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Oil and Natural Gas Corporation Ltd (ONGC) reported its Q1 2025 earnings, revealing a decrease in earnings per share (EPS) and revenue compared to forecasts. The company announced an EPS of ₹6.38, falling short of the anticipated ₹6.89, marking a 7.4% negative surprise. Despite this, ONGC’s stock rose by 1.27%, closing at ₹235.52, reflecting investor optimism about the company’s strategic initiatives and future guidance.
Key Takeaways
- ONGC missed its EPS forecast by ₹0.51, a 7.4% negative surprise.
- Revenue fell short of expectations, with a significant deviation from forecasts.
- Stock price increased by 1.27%, suggesting positive market sentiment.
- New discoveries in offshore regions boost future production potential.
- Cost reduction strategies and operational efficiency remain a focus.
Company Performance
ONGC’s Q1 2025 performance showed a mixed picture. The company reported a net profit after tax of ₹8,024 crore, a 10.2% decrease from the previous year. However, consolidated net profit increased by 18.2% to ₹11,552 crore. The decline in crude price realization, from $83.05 to $66.13 per barrel, impacted revenues. Trading at a P/E ratio of 8.31 and offering a substantial dividend yield of 5.2%, ONGC continues to demonstrate value for investors. Despite these challenges, ONGC made significant strides in exploration and production, with new discoveries in the Mumbai and Western offshore regions. For deeper insights into ONGC’s valuation metrics and growth potential, InvestingPro subscribers have access to over 30 additional financial metrics and expert analysis.
Financial Highlights
- Revenue: ₹1,631,080 crore, falling short of expectations.
- Earnings per share: ₹6.38, down from the forecasted ₹6.89.
- Crude oil production increased by 1.2%, with natural gas production remaining flat.
- Statutory levies expenditure decreased by 37.9%.
Earnings vs. Forecast
ONGC’s actual EPS of ₹6.38 was below the forecasted ₹6.89, resulting in a 7.4% negative surprise. The revenue also significantly missed expectations, highlighting challenges in meeting market forecasts. This deviation from expectations contrasts with ONGC’s historical performance, where it has typically aligned more closely with forecasts.
Market Reaction
Despite missing earnings forecasts, ONGC’s stock rose by 1.27% to ₹235.52. This positive movement indicates investor confidence in the company’s future prospects and strategic initiatives. With a beta of 0.38, ONGC generally trades with low price volatility, and has maintained dividend payments for 25 consecutive years - a remarkable achievement highlighted by InvestingPro. The stock’s performance remains within its 52-week range of ₹205 to ₹338.75, suggesting a stable outlook amidst broader market volatility. Based on InvestingPro’s Fair Value analysis, the stock currently appears undervalued, presenting a potential opportunity for value investors.
Outlook & Guidance
ONGC’s forward guidance includes a focus on increasing production and operational efficiency. The company aims to ramp up production in the KG Basin by Q4 FY26 and has set a CapEx guidance of ₹36,000 crore. This includes significant investments in exploration, infrastructure, and drilling. The company has also set ambitious production targets for FY26 and FY27, indicating a strong growth trajectory.
Executive Commentary
"We are actively working to boost output of our new well gas," stated the Director of Finance, highlighting efforts to enhance production. Additionally, the company emphasized its focus on cost reduction, with plans to implement new transportation methods to reduce operational costs.
Risks and Challenges
- Crude oil price volatility may continue to impact revenue.
- Geopolitical tensions could affect production and supply chains.
- The petrochemical cycle’s recovery is uncertain.
- Cost reduction strategies may face implementation challenges.
- Market saturation in key regions could limit growth opportunities.
Q&A
During the earnings call, analysts inquired about the challenges in the KG Basin production and the company’s strategies to overcome them. ONGC addressed these concerns by outlining its plans to increase production capacity and improve operational efficiency. Additionally, questions about new well gas pricing and potential were clarified, providing insights into the company’s revenue strategies.
Full transcript - Oil And Natural Gas Corporation Ltd (ONGC) Q1 2026:
Pansia, Conference Moderator: Good afternoon, ladies and gentlemen. I’m Pansia, moderator for the conference call. Welcome to OMBC’s earnings conference call for quarter ended thirtieth June two thousand twenty five. We have a speaker today, director of finance, OMBC and team who will interact with investors and analysts to discuss q one earnings. As a reminder, all participants will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes.
Should you need assistance during the conference call, please signal an operator by pressing star and then 0 on your touch tone telephone. Please note that this conference is being recorded. I would now like to hand over the floor to from Goncourt for his opening remarks. Thank you and over to you sir.
Director of Finance, Director of Finance, ONGC: Yeah. Good afternoon ladies and gentlemen. I’m director of finance, OMGC and I welcome you all in this OMGC’s earning call for q one financial year twenty six. Thank you all for joining us on this call. I’m joined over here by my colleague from ONGC, Ajay Kumar Singh, he’s chief of corporate planning.
So, Yogesh Nek, he’s our chief corporate finance. Akhilesh Tivari, he’s our head corporate accounts. Prakash Joshi and Anand Kukerati from our investor relations firm. We are we also have Mukul Bhattnagar and Dasan Pulsari from ONGC Limited. ONGC has compiled its financial results for the quarter ended thirtieth June twenty twenty five, which have been reviewed by the statutory auditors.
The financial results have already been released on the 08/12/2025 through a press note and sent to the stock exchanges. This has also been sent to the analysts who are there on our mailing list. A brief synopsis of the results follows. The company has earned a net profit after tax of rupees 8,024 crore during quarter one financial year twenty six as against 8,938 crore during q one FY twenty five. It’s a decrease of 914 crore, about 10.2% decrease.
This decrease in net profit during q one twenty six is mainly on account of lower crude price realization. The crude price realization was $66.13 per barrel in this current quarter against USD 83.05 per barrel in q one FY twenty five. Accordingly, the sales revenue in q one twenty six has decreased on account of lower revenue from crude oil. The decrease is about 4,047 crores and value added products also is lesser by 4,409 crores, which has been set off by increase in natural gas revenue by 1,083 crore rupees as against those corresponding quarter of the previous year. Increase in natural gas revenue is due to increase in sealing price of nomination gas from US dollar 6.5 per MMBtu to US dollar 6.75 per MMBtu and additional revenue from New Well gas sales.
The incremental revenue from New Well gas during q one f y twenty six is approximately 333 crores. During q one f y twenty six, the expenditure on account of statutory levies was 6,073 crore as compared to rupees 9,772 crore for q one twenty for FY ’25. So this is a decrease of rupees 3,699 crore, about 37.9 or 38% decrease. This is mainly attributable to abolishment of SAED on Kuroy, which was effective from 12/02/2024. So this SAD amount was about $2.08 $9.02 9 crore in q one f y twenty five.
There’s also a decrease in average selling price of crude oil from rupees $51,007.68 per metric ton in q one f y twenty five to rupees 42,593 per metric ton in q one f y twenty six. In Q one FY twenty six, operating expenses stood at 5,577 crores against 5,182 crores in Q one FY twenty five. There was an increase in contractual payments by 313 crore. These were driven primarily by higher FPSO full day rate charges, which was about 191 crore at KG ninety eight ninety eight by two. Also, raw material consumption cost increased by 265 crores quarter on quarter basis and this was due to the increase in LNG consumption cost mainly at the hedge c two c three plant, which was amounting to 244 crores.
The depletion, depreciation and impairment cost for q one f y twenty six stood at 6,531 crore rupees and against 5,897 crore rupees during the corresponding period of the previous year. So, this was an increase of 634 crore rupees. This increase was mainly due to depletion expenditure of 211 crores. Out of this 211 crores, $1.74 crores depletion expenditure was at kg 98 by two. This was due to the cumulative impact of increase in carrying value of o and g or oil and gas assets.
Increase in depreciation by 393 crores was mainly at Western offshore. There was also due to the addition of 259 crores of ROU assets, which was related to hiring of additional vessels at offshore. At the consolidated level, the company has earned a higher net profit. Profit after tax of 11,552 crores during the ’26 as against 9,776 crores during the ’25. This is an increase of 1,778 crores, about 18.2% increase And this increase has been primarily additionally due because of HBCS.
During this quarter, again, we have successfully reversed, we have increased our crude oil production. Point is to successfully reverse the crude oil production decline of q in Q4 FY ’twenty four and continues to increase production quarter on quarter basis for the past four to five quarters. The stand alone crude oil production during f q one ’twenty six was 4,683,000 metric tons with an increase of 1.2% over q one f y twenty five. Stand alone natural gas production was almost flat at 4.846 BCM in q one f y twenty six as against 4.863 BCM in q one FY ’25. OMGC has also declared two discoveries during FY ’25 for q one FY ’26 in its operated acreages.
Out of these discoveries, Badriamani is a prospect discovery in Mumbai offshore and Suryamani is a pool discovery at Mukta formation in Western offshore. Gas from new wells continues to be a key contributor with revenue from new well gas reaching 1,703 crores in q one FY twenty six. This has delivered an additional 333 crore as compared to the APM gas price. As these as the gas from these new wells is eligible for a 20% premium over the domestic APM gas price. The price for new well gas was 8.26 MMBtu, and for nomination gas was 6.64 per MMBtu.
ONGC is actively working to boost output of its new well gas. Now with the TFC, technical service provider, already in place for the MHC, more sharper focus on deepwater and ultra deepwater exploration, expediting monetization of new hydrocarbon discoveries, expanding the enhanced oil recovery initiative and commencing additional production from upcoming projects currently at various stages of development, I am confident that these efforts will help offset the decline in production from M and A, placing us in a stronger position in the coming quarter. With this, I finish my briefing for the first quarter results for financial year 2526. We will be happy to field any questions from you and we would request you to kindly restrict your queries on financial results only. Thank you very much.
Pansia, Conference Moderator: Thank you, sir. Ladies and gentlemen, we will now begin the question and answer session. If you have a question, please press star and one on your telephone keypad and wait for your turn to ask button. If you would like to withdraw your request, you may do so by pressing star and one again. The first question comes from from ICICI Securities.
Please go ahead.
Director of Finance, Director of Finance, ONGC: Yeah. Good afternoon, sir. Thank you for the opportunity. I had a couple of questions. Firstly, as far as the production is concerned, you did mention that you know the pre production has sort of stabilized and starting to increase.
So what is the exact production level from the JV asset at this point profile? And what is the exit rate guidance as of now? For the KG asset KG asset, you are so currently yeah. From KG From KG asset, we are producing 30,000 plus barrels of oil per day, and the gas is about three m m f c m b. And for the yeah.
I mean Sorry, Go ahead. And as far as the projections are concerned, we are expecting that the prices should ramp up from January, February onwards. We are I’m talking only about the KG Basin as of now. Mhmm. Mhmm.
And the gas also should move up to six to seven MMSEMD. Right? That should be FY ’26, we should ideally exit it at maybe slightly higher oil and six to seven and then a c m d of gas output. Is that a fair way to look at it? Yes.
Okay. The the second question was what, sir, with respect to the TSP, the technical service that you just mentioned. Any progress you can share or any granularity in terms of timeline for when we can start to see some of the incremental production, which was sort of, you know, that will good? Yes. Already the teams are in place.
As we had mentioned that from April onwards, all the teams, both from BP as well as from ONGC have started working together. They are the work has started. They have started looking at the various data that is available for MH field. We do expect that something tangible should start coming up from the fourth quarter of this year, from January 26 onwards. Fourth quarter of this year, we should start to see the results.
Yes. And last question, if I may. Sir, with respect to OPAL, you know, thanks for being able to share some additional data that you’ve done as part of the information. I just wanted more sense of where you know, what impact, you know, higher amount of the same would have in terms of our input cost. The arrangement that we are looking to do to sort of build, you know, we are looking to see them and go to the same directly.
What kind of impact do we see on our profitability? What if we start sort of consuming or switching to ethane in the larger before this month? So basically, that ethane usage will start from twenty eighth on only twentieth onwards only. Currently, we are extracting l using LNG for that extraction of the two city portion. However, once the contract with Qatar gets over in ’28, we are looking at derisking this project by tying up 18 supplies.
And the best way to do this thing is ensuring that the supply is steady for which we have are planning to have our own shift for transportation of ethane. It’s cheaper. And this comes out to be cheaper because plan to most of the ethane is normally available from The US, which is linked to HandiHUB. So we do believe that the cost landed cost over here should come out to be cheaper than what we have today. How much of you can require this will be there sir at full capacity?
For over 500 kt. It will be 600 kt per annum, the kilo tons per annum. 600 kt per annum. And just one last follow-up, do you expect to fix EBITDA breakeven in this year? Are we guiding to that effect because we are Actually, still the EBITDA first quarter itself, we are EBITDA positive, and we are hopeful the measures that we have taken.
And now that the plant is also running more than 90% capacity, we should end the year with a good performance. Great, sir. Thank you so much for answering the questions. I’ll come back with them.
Pansia, Conference Moderator: Thank you. The next question comes from Ahmed Burada from Asset Capital. Please go ahead.
Director of Finance, Director of Finance, ONGC: Yeah. Hi. Thanks for the opportunity. So just on on on your production volume, so this marginal uptick include include the volume as you highlighted. So which field will it have come from?
And also on on on on this, as as you said that the the renewals are working on it, but if you could just give some guidance on volume uptick on that from what is it? So first, Kam, as far as the if any particular production there has been an uptick, no. It has been general all across. There have been different areas in which we have got marginal increases in crude oil oil production as such. We are expecting, as I’ve already mentioned, that from KG Basin, we should have much further increase from January, February onwards for both crude as well as gas.
And as far as TSC is concerned, we are the work has been initially started now. The initial work would be more to do with interpretations, through the data, and then suggesting what actually to what actions need to be taken, which would take some time for the actions to be completed. However, we do expect that we should see some impact upon production from the fourth quarter of this year. So as of now, there is nothing concrete on the ground as far as to report, but, yes, things are moving in the right direction. And that’s why we are hopeful that on the fourth quarter this year, we should have some results or benefits of TSP visible.
Okay. And then the Brahman project is on track for q four, I think, which we guided earlier. Yes. It is on track, very much on track, and we do expect that this coming year, fourth quarter, we should have a production coming out of. Got it.
Thank you, Bhakti. Thank you.
Pansia, Conference Moderator: Thank you. I request the participants to receive the two questions in the initial round and join back with you for more The next question comes from from Capital Private Limited. Please go ahead.
Director of Finance, Director of Finance, ONGC: Yes. Thank you for the opportunity. I have two questions. One is on the 80 d five BP production guidance. You had earlier said you will release 45,000 barrels per day pre gold production and gas 10 MMS GMV.
Would you be willing to share an update on the timelines when you reach the production in in KGD 5? That is question one. And secondly, could you refresh us with your guidance for FY ’26 and ’27 hydrocarbon outlook, both oil and gas separately, if you can? Thank you so much. Yeah.
So as I mentioned, for KG 98 by two, our guidance would be for the fourth quarter of this year. We should move ahead beyond 30,000 what we are producing just now. We were to have this earlier on during this quarter itself. However, because there was of vessels not being available for that installation of given quarter, this got delayed and due to monsoon coming and setting in, it was not possible to do the work. So it will now get shifted to winter, which is happening sometime in November, December and that’s why by January, February, we should have this production coming up.
Gas also, we have said that 10 MMScmd should come up from now the fourth quarter onwards starting off six to seven and then moving up to 10 MMScmd. Once the feed, once the wells that are opened up and connected through the living portal platform stabilize. Coming to your second question of what is the production level for 2627. For oil, crude oil, we have 21,210,000 metric tons. Guidance on gas for 2627 is 21.487 BCM.
So the total would come out to 42.5. Right. And the Just one this one. Yeah. No.
No. My current year also on the yeah. On on the current year also. Yes. Thank you.
Yeah. Sorry, sir. For the current year, we have crude oil at 19.928 and gas at 20.11, which is 41.04 in totality. Thank you very much. Thank you.
Pansia, Conference Moderator: Thank you. The next question comes from Abhijit Rani from JPMorgan. Please go ahead. Yes. Hi.
Thank you
Director of Finance, Director of Finance, ONGC: so much for the opportunity. So my question is regarding the OPL performance. I see that the volume set of remain flat on q, but the revenues are substantially down. So could we have some color on that? Mukul, can you just add on to the volume?
Hey. Yes. Volume terms, we are still on. Hello? Yeah.
You hear me? Can yes. Yes. Volume terms, we are sort of flattish because of the recent impact, the geopolitical impacts, the recent assets have been impacted in terms of production. And we have been almost stable.
The production the oil production this quarter was in in the same range as in the last quarter with a difference of about 2%. As far as our operated assets are concerned, we are doing well. We have increased production in South Suran. In CPO five, we are doing pretty well. But the revenue is largely impacted by the crude price realization.
So because our average realization has come down from 67 to 60. So that also has a. Right, sir. So but if I look at on a stand alone, OMBC first OMBC, I see that the revenue from the was basically down only 9%. Whereas for only a total of 64%, which is, you know, based on trying to figure out if the renovations have come down, I think if the impact, even if we take into account the mix, it’s going to come down that that much.
So is there something that you’re missing? No. Just to share, there is a some kind of change in the arrangement related to the sale in one of the projects. So what has happened earlier, we were selling the entire product, and it was getting recorded as revenue in the books of ONGC business. Right now, that sales is not coming to us.
Instead, we are getting the that entire profit from the JV. So earlier, we were selling on behalf of JV that was getting recorded as revenue. Now it is not coming to us. So that arrangement has changed. That’s a significant impact.
Almost 900 crores plus of revenue that was there in the last year is not there in the current year. Understood, sir. Thank you so much.
Pansia, Conference Moderator: Thank you, sir. The next question comes from from Ampik Stockbroker Limited. I want to understand that Newell gas,
Director of Finance, Director of Finance, ONGC: so currently, that amount, the level at which you are, when how often does it get reviewed? And when should we expect the next review and to what kind of a confirm?
: You
Director of Finance, Director of Finance, ONGC: See, this price was revised every month. No. Reviewed every the fund gets reviewed every month. It’s every six months. So when would be the next review?
Sometime around the next in the next two, three months? Yeah. I think that’s Just just hold on for a second. Yeah. Your quantity gets projected monthly also, and monthly, the accordingly, that quantum gets decided.
And pricing is based upon the gas pricing, whatever that APM price to per Indian basket 20% upon 12% on the Indian basket, which gets revised every quarter. What upon what update on? Mozambique. Yeah.
Mozambique currently still in force majeure, but we are expecting that since the improved there has been very substantial improvement on the ground. From we were we are expecting August, September, this FM to be lifted. Already Total is in talks with the government over there. They have also had talks with all the partners, and actions have started to have been initiated to start the operations over there. So we do expect that very shortly, maybe in a month time, we should have work up and going and the portion of your withdrawn from there.
Thank you.
Pansia, Conference Moderator: The next question comes from my. You go ahead.
Director of Finance, Director of Finance, ONGC: Hi, Thank you for the call. My question is more related to the operating cost itself. I think if you look at on a per unit basis, your operating costs are still tracking higher. If you look at y o y basis on a on a long cycle last three year average basis, any chances of this kind of coming down considering you have been highlighting focus on the cost side in the last call? So what are like, is there a view here that you can share with us?
Yes. So the increase, as I’ve mentioned earlier, was that mainly because of the hiring charges that have increased as far as the FPSO was concerned on the East Coast. When you compare on q one q quarter on quarter basis, during this current quarter, the FPSO working was working at full capacity and therefore the price or the rate that was in charge was the full rate. In the previous year quarter one, the FPSO rate was lower because it was not fully being utilized. It was at that time 70% was the rate, which subsequently from October onwards became full the full rate that was in charge.
So that was one aspect that comes up. Secondly, at for OPAL, we supply C 2 C 3 through our C 2 C 3 plant. Now since OPAL is now working or is full stream ahead, there has been we have been providing more LNG also to them. And because of this, the purchase of LNG has also increased. Processing of our gas has also increased over there, and this has led to the increase in the cost.
The focus on cost reduction remains. We have been starting to cut down account of our cost also. We have there have been decreases under other expenses and transportation expenses, etcetera, have also come down. What has increased is in sync with the quantum of production increases that have happened. So the focus remains upon cost control.
However, if there’s production increase, there is going to be for the production cost also moving up accordingly. But there have been a number of areas in which we have been able to reduce the cost also. Like insurance, where we have cut down on the cost, there has been a decrease of about 15% in insurance expenses. We have also cut down upon some of the repair and maintenance costs also. So this is work in progress always and this is going to help.
Very very substantially, very substantially, we have been able to reduce our manpower cost also partly because, yes, there have been retirements in the company. Yep. Hello? Am I audible? Yeah.
Yeah. We have also sent measures to reduce our operational cost in another method. If you see for the Western offshore, our fee spread out from right from below Mumbai side to right up to the Gujarat Coast. So we have been earlier operating from Mumbai only. All our or all our dispatches of cargo etcetera have been from Mumbai.
Nava, Singapore. Now we have taken up Pipawa Port. We have which is closer to the northern side of this sea. And by using that port, we have we have started to cut down on the cargo or the transportation cost. We have also started utilizing Surat Airport for our 40 for manpower deployment.
So it cuts down a lot on the time as well as the 40 that are booked. So these cost reductions will get translated over this year. This should be visible subsequently in. No. Very clear.
Think thank you for that detailed explanation. And the second thing I’m saying Sorry. There’s something Yeah. Go ahead. Ahead.
Go ahead. Go ahead. Ahead. When you look at whether we were are also using crew boats, which reduces the cost of transportation of people from shore to the offshore. It reduces the number of parties helicopter parties that we have to which are much more expensive, and it also reduces the risk that the people are our employees and contractual employees face while going to offshore.
So all these all these measures will translate during over the course of the year into lesser cost as far as operations are concerned. So sir, just a extension of this, correct, is there a guidance you want to kind of give us into the end of the year where your OpEx per barrel could kind of sit or whether you see a 10%, 15% reduction with all the things that you kind of highlighted very clearly on a per barrel basis where your cost could kind of sit, considering there could be some impact coming in also because of some of the credit costs, etcetera, kind of shifting lower as well, I’m assuming. So is there something that you can guide us on that? In the first quarter, we will not be in a position to do that guidance. We were thinking on this issue, but then we would let let there more time flow because power has come very recently.
We have not yet stabilized those operations. We have also not shifted most of our operations from Mumbai, only partly they have shifted. So by within a six month period, by maybe October number onwards, in the fair season, we should start making more use of the power as such as well as for those crew boards. So then the cost would start appearing how much are we are going to save on it. Okay.
Sir, the last question was on OPAL. You are running now at close to around 90 percent utilization rate. You think I think that the most of the other assets in the country are running closer to 100 or above, sometimes even above 100. Do you think with your performance in OPAL that you have been now scaling up, you think that’s something that you can kind of get to going forward? Yes.
Yes. We are very hopeful or very rather we are aiming to do that, but should be closer to a 100 or even try and process. Correct. Yes. Thank you.
Thank you.
Pansia, Conference Moderator: The next question comes from from HSBC. Please go ahead.
Director of Finance, Director of Finance, ONGC: Yeah. Thank you for for the opportunity. My first question is, you know, sir, gas production has been delayed a bit. Do you understand the risk for in ramp up? And what could you attribute as a main cause for slight delay in the gas ramp up, especially the KG Basin side?
Yes. So for the KG Basin, that production could not happen because our living quarters got delayed. Living quarters have that got delayed. And because of which, we are not in a position to tie up our gas wells, which have already been replaced, and they need to be connected and gas supply should start. So once that happens, as I said in the winter season, November, February, we should have that gas coming up from there.
Okay. And that milling quarter is yet to be tied up? Yeah. It is to be installed as it. It is fabricated.
Everything is ready. It has to be brought to India and then installed over here. Because of the monsoon season, we are not able to do it now. We’ll be able to do it after October only. So it is planned to be done in November December.
And on the oil side, will that also help oil ramp up from 30,000 to more or you think it will reach the peak now? No no. We expect the peak to be higher. All these measures would also should also help to improve the oil production from East East Coast, KG 98. Yes.
And what is the peak oil you’re talking about here? We have we have a target of 45,000. 45. And secondly, if you could talk a bit about the slightly lower other income during the quarter, anything you can attribute it to? See, other income was lower because last year, we pumped in about $18,003.65 crores into OPAL.
So that Okay. Cost, but that much amount went out and interest rates have also fallen, gone southwards. So that has contributed for that reduction in our other income as such. Okay. And and how much is OPAL contributing now?
OPAL EBITDA positive, it has happened for the first quarter. Okay. Yeah. So it is EBITDA positive, which is around 13 crores. 13 crores.
Okay. And and what does it take from here for OPAL to to better numbers? From here, one, we need the production to happen. Broadly, that is all that will be required. Now that the plant is running on plus, we expect that it should improve its performance should improve, and we should get a better result.
Also affects the plant. We are also expecting the petrochemical cycle to start with an upturn. Prices are looking up, and for the period of this year, we should expect that it should do much better. Understood. That’s the answer.
Thank you so much. Interest rates are also going down plus cost also interest, quantum also going down. It should it should help us. Okay. Understood.
Alright. Yeah. Okay. Thank you so much. Yeah.
Pansia, Conference Moderator: Thank you. Ladies and gentlemen, if you have any questions, please press star and one on a telephone. The next question comes from from Amdad Capital Private Limited. Please go ahead. I received question from from Please go ahead.
Hello.
Director of Finance, Director of Finance, ONGC: Am I audible? Yeah. Yeah. You are audible. Sorry, sir.
I was thinking how much of the cash volume is currently ATM and NWG percentage. Right? And going ahead, what how will this percentage change? Yeah. Just one moment.
So currently, our new oil gas, what we are expecting for this 2526 would be 2.6 BCM going ahead, which would be around 13 to 14% asset. Next year, we are expecting it to be 4.8 plus BCM, which would be around 24 to 25%. Understood. And sir, my follow-up question is, just wanted to know, like, the arrangement with DG. Are we doing any other type of arrangements, onshore arrangements to increase production of a smaller well?
And do you see any upside there in terms of volumes or output? We we do not currently have any other arrangements with BP as far as the production increases are concerned except for the one that we have at Mumbai in hand. Coming to other fields, onshore fields, yes, there are many pockets where we could be having additional production, which is possible. And we are continuously doing those things. New well gas, if you see, is there and the production or the quantum is rising because we continue to look for newer avenues for production in the existing fields also, mature fields also.
So it’s a continuous process and we expect that additional oil and gas should continue to flow from these mature fields also. Got it, Sir, the CapEx guidance for F ’26 and next ’27, can I have broad breakup of that? Broadly, we would continue 36,000 plus or 2,000 odd, whatever we are expecting annually CapEx, out of which exploration should be 8 to 8 to 10,000 crores. We should have our infrastructure projects coming up to 15 odd of crores. Drilling should be another 15, less than 15.
Drilling should be around 10,000 crores that is happening and balance some other projects, sir. It. Thank you.
Pansia, Conference Moderator: Thank you. The next question comes from Ankit Patel from HSBC Mutual Fund. Please go ahead.
Director of Finance, Director of Finance, ONGC: Good evening, So regarding ONGC’s investments in OPAL, just also wanted to understand, going forward, was there is a significant debt which is there in that balance sheet. And while it is starting to contribute EBITDA, would you also be looking to basically contribute more capital over there to further improve the profit and loss? At the same time, there are also some expansion plans, which were which had come up in the news regarding plans to ramp up capacity under ONGC into the subsidiaries. So would OPAL be also in the mix of all this? Is there any progress or development which you can share on this?
So for OPAL, the debt has been debt is around $8,024,800 odd crores. We do not immediately intend to add any further equity or pumping funds to reduce this debt from ONGC side. We do believe that the company, OPAL, would be able to sustain its existing debt as of now. Now considering that the petrochemical title is expected to look up and the plant is running well. So as of now, we do not have any plans, immediate plans of company and any money into Oparla.
Actually, we did it will it should be able to manage on its own. The second part, as far as whether we are looking at any expansions or anything like that, Immediately, we do not have plans because we are looking at ensuring that this plant runs properly. But, yes, it does have lot of capabilities and capacities available over there as far as land is concerned or streams are concerned, different streams or gas streams or hydrocarbon streams that are concerned, which could be very beneficial for value add products to be generated from there. And we in the we would be looking at all these in the future. So fine.
Thank you, ma’am.
Pansia, Conference Moderator: Thank you. The next question comes from Kishan Mundra from DAM Capital. Please go ahead.
Director of Finance, Director of Finance, ONGC: Hi, sir. Just one question or rather a clarification. So the production guidance that you’ve given for FY 2627, is it for ONDC standalone or is it also includes your share of JV production? It is only standalone. Okay okay, understood.
That’s it from me. Thank you.
Pansia, Conference Moderator: Thank you. We have a follow-up question from from under capital private limited. Please go ahead.
Director of Finance, Director of Finance, ONGC: Yeah, my my questions have been answered. Thank you so much. Okay.
Pansia, Conference Moderator: Thank you, sir. There are no further questions. Now, I hand over the floor
Director of Finance, Director of Finance, ONGC: Yeah, thank you very much and thank you all for being on this call. And we do hope that we have been able to answer all your questions that have been there. If you require any further information clarifications, please get in touch with our IRC department. I think should be available with you or otherwise, they are available on our website. So, thank you once more all for joining this call.
Pansia, Conference Moderator: Thank Thank you, you sir. Sir. Ladies and gentlemen, this concludes your conference call for today. Thank you for your participation and for using Dosabad’s conference call service. May disconnect your lines now.
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