ONGC record profits, capex expected to reach Rs 600 bn within 3 yrs

11 Oct 2023 CW Team

As India's largest oil and gas producer, ONGC reported a combined profit of around Rs 800 billion in the two years leading up to March 2023, with the noteworthy achievement of having zero net debt. Despite consistently paying substantial dividends to shareholders, ranging from 30-45% of annual profits for a decade, the company's annual capex had stagnated at approximately Rs 300 billion. This stagnation was attributed to the absence of new field development plans, explained Pomila Jaspal, Director of Finance at ONGC.

Jaspal pointed out that low domestic natural gas prices had hindered the economic viability of several projects, leading to them being put on hold. However, changes in domestic pricing policies and subsequent price increases have now made some gas projects economically viable, prompting ONGC to pursue them.

ONGC's annual capex typically includes Rs 200-220 billion for maintaining production from existing fields and an additional Rs 70-80 billion for exploration and development. Jaspal anticipates the capex to increase by Rs 30 billion next year, reaching Rs 330 billion, and remain at that level until 2026-27. Further increases, potentially amounting to Rs 20-30 billion, are expected due to green spending initiatives. However, the significant surge in capex is anticipated after 2026-27 when petrochemical and green projects are fully operational.

ONGC has ambitious plans, aiming to invest Rs 1 trillion in petrochemical expansion and another Rs 1 trillion in green businesses by 2030. This translates to additional annual spending of about Rs 600 billion in the last three years of the decade, in addition to the regular oil and gas capex of Rs 330 billion. Jaspal clarified that such substantial investments would likely be collaborative, possibly in the form of joint ventures. The company intends to start by acquiring small green projects and gradually developing larger projects internally.

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

ONGC's robust financial position, bolstered by record-breaking profits over the past two years, has positioned the company for significant investments, according to its finance chief. The company's annual capital expenditure (capex) is set to increase by 10% in the next fiscal year due to heightened upstream activities. Moreover, the capex is expected to double to Rs 600 billion within three years as the company's new petrochemical and green energy initiatives take shape. As India's largest oil and gas producer, ONGC reported a combined profit of around Rs 800 billion in the two years leading up to March 2023, with the noteworthy achievement of having zero net debt. Despite consistently paying substantial dividends to shareholders, ranging from 30-45% of annual profits for a decade, the company's annual capex had stagnated at approximately Rs 300 billion. This stagnation was attributed to the absence of new field development plans, explained Pomila Jaspal, Director of Finance at ONGC. Jaspal pointed out that low domestic natural gas prices had hindered the economic viability of several projects, leading to them being put on hold. However, changes in domestic pricing policies and subsequent price increases have now made some gas projects economically viable, prompting ONGC to pursue them. ONGC's annual capex typically includes Rs 200-220 billion for maintaining production from existing fields and an additional Rs 70-80 billion for exploration and development. Jaspal anticipates the capex to increase by Rs 30 billion next year, reaching Rs 330 billion, and remain at that level until 2026-27. Further increases, potentially amounting to Rs 20-30 billion, are expected due to green spending initiatives. However, the significant surge in capex is anticipated after 2026-27 when petrochemical and green projects are fully operational. ONGC has ambitious plans, aiming to invest Rs 1 trillion in petrochemical expansion and another Rs 1 trillion in green businesses by 2030. This translates to additional annual spending of about Rs 600 billion in the last three years of the decade, in addition to the regular oil and gas capex of Rs 330 billion. Jaspal clarified that such substantial investments would likely be collaborative, possibly in the form of joint ventures. The company intends to start by acquiring small green projects and gradually developing larger projects internally.

Infrastructure Urban

06 Jul 2026

ABS Marine Sees CRISIL Credit Rating Upgrade

ABS Marine Services has secured an upgrade to its long term and short term credit ratings from CRISIL, reflecting improved profitability and revenue growth through long term contracts. CRISIL moved the long term rating from BBB+/Stable to A-/Stable and revised the short term rating from A2 to A2+. The action signals strengthened financial metrics and operational resilience. The company benefited from durable client relationships with firms such as ONGC and Schlumberger. The rating decision followed stronger cash flows and an enlarged bank loan facility, which increased from Rs 3,705 million (m..

Infrastructure Transport

06 Jul 2026

Project BRAHMANK Marks 16 Years Of Strategic Roads In Arunachal

Project BRAHMANK is marking 16 years of work to establish strategic road and bridge links across Arunachal Pradesh, maintaining and developing 811 kilometres of roads and nearly 86 bridges that range from small culverts to large steel and arch bridges. These transport links are described as critical for ensuring year-round movement of defence personnel, equipment and essential supplies while improving everyday travel for people in remote villages. The project balances national security requirements with regional development by focusing on reliable access in challenging terrain. Notable enginee..

Infrastructure Transport

06 Jul 2026

Longleng CSOs Give One Week Ultimatum Over Two-Lane Highway

Civil society organisations (CSOs) in Longleng district have demanded immediate restoration of the deteriorating Changtongya–Longleng two-lane road and sought a detailed status report on the stalled construction within one week. The demand followed a consultative meeting convened under the Phom Peoples' Council (PPC) to discuss welfare and development concerns. PPC president YB Angam Phom said prolonged non-maintenance had caused hardship to commuters and affected transportation, local commerce and the district's development. The meeting urged authorities to undertake immediate restoration a..