On February 27, 2024, Oil and Natural Gas Corporation (ONGC) announced the incorporation of its wholly owned subsidiary, ONGC Green, with an authorized capital of Rs 100 crore and a subscribed and paid-up capital of Rs 1 crore.
ONGC Green will engage in the business of various energy value-chains, including renewable energy (such as solar, wind, hybrid, hydel, tidal, and geothermal), biofuels/biogas, green hydrogen, derivatives like green ammonia and green methanol, storage, carbon capture utilization and storage, and LNG business.
ONGC Incorporates Subsidiary for Green Energy and Gas Business
ONGC, India’s largest crude oil and natural gas company, plays a pivotal role in India’s energy landscape, contributing approximately 71% to the nation’s domestic production of crude oil and natural gas. The company boasts comprehensive in-house service capabilities across all facets of oil and gas exploration and production, as well as related oil-field services.
ONGC recently announced the incorporation of its wholly owned subsidiary, ONGC Green. The subsidiary was formed with an authorized capital of Rs 100 crore and a subscribed and paid-up capital of Rs 1 crore, achieved through the subscription of 10 lakh equity shares at a face value of Rs 10 each.
The Ministry of Petroleum & Natural Gas (MOP&NG), Government of India, granted approval for the establishment of ONGC Green on December 5, 2023. This subsidiary is dedicated to venturing into green energy and gas business sectors, aligning with India’s sustainable development goals.
As of December 2023, the Government of India held a significant stake of 58.89% in ONGC, emphasizing the company’s strategic importance in the country’s energy sector.
Business Focus of ONGC Green
ONGC Green is poised to engage in a diverse range of energy value chains, including:
- Renewable Energy: Solar, wind, hybrid, hydel, tidal, and geothermal energy sources.
- Biofuels/Biogas Business: Exploration and utilization of bio-based energy sources.
- Green Hydrogen: Production and distribution of green hydrogen, along with its derivatives like green ammonia and green methanol.
- Storage Solutions: Development of storage infrastructure for energy products.
- Carbon Capture Utilization and Storage: Implementation of technologies to mitigate carbon emissions.
- LNG Business: Exploration and distribution of liquefied natural gas.
This strategic initiative underscores ONGC’s commitment to environmental sustainability and its proactive approach toward diversifying its energy portfolio in line with global trends.
ONGC’s Q3 FY24 Financial Performance
In the third quarter of the fiscal year 2023-24 (Q3 FY24), Oil and Natural Gas Corporation (ONGC) witnessed a decline in standalone net profit and revenue from operations compared to the same period in the previous fiscal year.
The standalone net profit of ONGC dropped by 13.66% to Rs 9,535.67 crore in Q3 FY24, down from Rs 11,044.73 crore reported in Q3 FY23. This decrease in net profit reflects the challenges and dynamics within the energy sector during the period under review.
ONGC’s revenue from operations also experienced a decline, falling by 9.83% year on year (YoY) to Rs 34,788.07 crore in the quarter ending on December 31, 2023. The decrease in revenue highlights the impact of various factors such as fluctuating commodity prices, regulatory changes, and market conditions on the company’s financial performance.
In response to the Q3 FY24 financial results, shares of ONGC witnessed a decline of 1.10% on the Bombay Stock Exchange (BSE), closing at Rs 266.40. The market response reflects investor sentiment and perception regarding ONGC’s financial performance and its outlook within the energy sector.
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