ONGC Eyes Venezuela Operatorship as Q2 Profit Jumps 57 Percent

Oil and Natural Gas Corporation shares will stay in focus after the company stated it expects to secure operatorship rights for two Venezuelan oil projects within the next three to six months. Anupam Agarwal, the finance head of ONGC, shared this update during an analyst call on Friday, noting the company is in advanced talks with Venezuelan and US authorities.

Financial Results

State-owned ONGC reported a 57.3% year-on-year rise in standalone net profit to ₹15,488.64 crore for the September quarter of FY27, compared to ₹9,847.97 crore in the same period last year. The growth came from higher crude oil and natural gas prices even though production dropped. For the April to September period, the firm posted its highest-ever first-half standalone net profit of ₹32,522 crore, an 82% increase from ₹17,872 crore a year ago. ONGC Videsh holds more than $500 million in pending dividends from the San Cristobal oilfield and the Carabobo 1 field in Venezuela, which will be adjusted once the new operatorship deals are finalized.

Market Outlook

Nuvama Institutional Equities kept a 'REDUCE' rating on ONGC and raised its target price to ₹224 from ₹223, pointing out that the company has missed its production targets in each of the past eight years. On the BSE on Friday, 6 November, ONGC shares closed 0.83% higher at ₹232 apiece. Rajesh Bhosale, a technical analyst at My Advisor Alpha, stated that the stock has faced selling pressure since May, dropping from around ₹310, but is now forming a base with resistance at ₹240 and support at ₹225.

Context

State-controlled energy firms like ONGC regularly balance domestic production duties with overseas investments to secure steady oil supplies for India. Share prices of major oil producers typically react to a mix of quarterly profit numbers, global crude oil prices, and international asset developments.