ONGC continues to pursue growth despite lower oil prices. In contrast to many of its peers, the company has maintained spending and is seeking new international growth opportunities. A portfolio dominated by legacy domestic assets means addressing medium-term portfolio maturity continues to be the primary strategic objective. A range of organic investment initiatives, including renewed efforts in exploration, could improve this outlook. But if ONGC’s ambitious 2030 production target is to be met, further M&A activity will be required. The recent acquisition of a stake in the Vankorskoye field could be the first of several acquisitive moves over the next few years. A strong balance sheet means ONGC is financially well-placed to pursue counter-cyclical expansion. Current financial gearing compares favourably to many competitors and could support up to US$10 billion of acquisitions in the near-term. But financial pressures will grow if low oil prices persist.
This report includes 3 file(s)
- ONGC corporate report PDF - 519.92 KB 18 Pages, 6 Tables, 20 Figures
- ONGC Corporate Report.xls XLS - 3.80 MB
- ONGC Interim Report.xls XLS - 596.00 KB