1 min read.Updated: 11 Dec 2020, 11:57 AM ISTAvneet Kaur
ONGC share price climbed 10% after Brent rose above $50 for the first time since March, as coronavirus vaccination rollouts kept hopes alive that demand for crude would build up next year.
Indian shares rose on Friday and were set for a sixth straight weekly gain as Oil and Natural Gas Corp surged on the back of higher crude prices, with sentiment also supported by optimism over COVID-19 vaccines. ONGC shares climbed 10% after Brent rose above $50 for the first time since March, as coronavirus vaccination rollouts kept hopes alive that demand for crude would build up next year. At 10:32 a.m., ONGC shares were trading at ₹100.80, becoming the top gainer among BSE Sensex stocks. This price level was last seen on February 25 this year.
Year to date, the stock is still down 27%. It has gained 30% in the last one month
The share has been on a rising spree since ONGC's wholly-owned overseas arm ONGC Videsh Ltd (OVL) reported a "significant" strike of oil in its onshore block CPO-5 in Llanos Basin in Colombia. OVL is the operator of block CPO-5 in Llanos Basin with a 70% stake while its partner Geopark holds the remaining 30%. This is the fourth commercial find in the block by OVL. The announcement was made last Friday after market hours.
ONGC reported 55% decline in standalone net profit at ₹2,878 crore for the quarter ending 30 September, 2020 as coronavirus pandemic impacted its earnings from oil and gas. The oil PSU reported net profit of ₹6,336 crore in year-ago period.
The standalone revenue from operations fell 31% to ₹16,917 crore as against ₹24,493 crore in September 2019.