ONGC fixes record date for 65% dividend; Q1 earnings seen robust

ONGC, a government oil and gas explorer, has a firm record date for determining eligible shareholders for a final dividend of 3.25 per share for fiscal year FY22. The 65% dividend is subject to shareholder approval by the company at the AGM scheduled for August 29. After approval at the AGM, the dividend will be paid within a period of 30 days. ONGC will announce its financial performance for the quarter ended June 30, 2022 (Q1FY23) next week.

In a regulatory filing, ONGC said that “the company has established August 19, 2022 as the ‘record date’ for determining members eligibility for a final dividend of 3.25 per share (ie @ 65%) for fiscal year 2021-22.”

“The recommended dividend, if approved at the AGM, will be paid within the specified 30-day period of the declaration,” it added.

The company is scheduled to hold its 29th Annual General Meeting (AGM) on August 29, 2022.

On Thursday, ONGC stocks witnessed volatility, finishing flat but green on BSE. The shares settled on 136.20 each up 0.41% on the stock market. The company’s market capitalization is around 1,71,343.40 crore.

ONGC has moved the June 2022 quarterly performance announcement to August 12 from earlier August 10.

For Q1FY23, Dayanand Mittal analyst at JM Financial expects the company’s profits to rise sharply sequentially as a result of higher crude prices and a rise in domestic gas prices.

About ONGC, Mittal said: “Assumes a) net crude oil realization at $108.4/barrel (vs. $94.8/barrel in 4QFY22) in line with Brent price gains; b) domestic gas realizations at $ 6.5/mmbtu (vs $3.4/mmbtu in 4QFY22) in line with the increase in the domestic gas price; c) total crude oil sales volume increased 0.7% qoq; and d) total gas sales volume increased by 2.7% qoq.”

JM Financial expects ONGC’s revenue to increase 42,619.5 crore in Q1FY23 is up 85.1% yoy and 23.5% qoq. EBITDA is seen on 25,820.4 crore higher at a robust 112.5% ​​yoy and 38.9% qoq. While PAT is expected on 15,454.9 crore is up 256.5% yoy and 74.4% qoq.

The analyst has given a buy recommendation to ONGC with a price target of 210 each, as the stock is one of the main beneficiaries of rising crude oil prices.

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