ONGC: Innovative Projects and Planned Expansions to Boost Profitability

SEATTLE (Oil Monster): The Oil and Natural Gas Corporation (ONGC), a government-owned oil and gas explorer and producer, said it anticipates a significant increase in future profitability, mostly due to creative initiatives and possible expansions.

Through new wells and initiatives, the corporation hopes to enhance oil and gas production, which will raise profits and revenues.

ONGC aims to reverse the declining trend in crude oil production by opening new oil wells. This comprises three new wells in the deepwater block KG-DWN-98/2, from where it reported first production earlier this year. The Daman upside and DSF-II gas projects are expected to come online in FY 26. In addition, it plans strategic increase in gas production from high-profile projects like KG-DWN-98/2. According to the statement, all of the aforementioned actions will help to increase profitability and earnings.

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Analyst projections indicate that during the next three years, ONGC's revenue will expand by 3.8% annually. It is anticipated that the profit margins will rise from 6.8% to 8.7%. By November 2027, the majority of analysts predict that the company's earnings will have increased to INR 584.7 billion, a substantial increase from the present INR 410.9 billion.

The company pointed out that the aforementioned growth estimates could be threatened by both declining crude oil prices and increased operating expenses.