This Maharatna PSU stock which is engaged in the exploration, production, and development of crude oil and natural gas, production of LPG, and transportation of crude oil up by 4 percent after the company collaborated with Total Energies for Methane Emission Detection at COP29.
Price Action
With a market capitalization of Rs. 79,232 Crores, the shares of Oil India Limited were up by 4 percent in the day’s trade at a day’s high of Rs. 490.75 per equity share, from its previous day’s close price of Rs. 472.55. The stock has delivered a return of 132 percent in the past year which has outperformed the nifty index in the same period. The stock has reiterated from the day’s high and currently trading at Rs. 487.10 apiece which is 3.08 percent higher.
What Happened
Oil India Limited has signed a cooperation agreement with TotalEnergies for Methane Emissions detection and measurement using TotalEnergies AUSEA technology at Oil India sites in India. Recently, the company joined the Oil and Gas Decarbonization Charter aimed for net-zero operations by 2050, near-zero methane emissions by 2030, and zero routine flaring.
Oil India will use TotalEnergies product, AUSEA gas analyzer which features dual sensors that detect methane and carbon dioxide emissions while identifying their sources. This advanced technology improves methane emissions detection compared to traditional methods and provides access to hard-to-reach areas across various industrial facilities, both offshore and onshore.
Management Commentary
Patrick Pouyanné, the Chairman and CEO of TotalEnergies said “We are thrilled that OIL has joined our growing collaboration network by utilizing our AUSEA technology. This reflects the momentum gained by the Oil & Gas Decarbonization Charter launched at COP28, promoting industrial best practices. AUSEA now operates globally, supporting OGDC members in achieving near-zero upstream methane emissions by 2030,”.
Further, Oil India’s Chairman and Managing Director Dr. Ranjit Rath commented on the pact “By joining our peers in the OGDC, OIL reiterates India’s commitment to the global community, while underscoring OIL’s dedication to reducing emissions. OIL is pleased to be collaborating with TotalEnergies, an industry pioneer in methane emissions detection and measurements”.
About the Company
Oil India Limited (OIL) is a central public sector undertaking engaged in the exploration, development, and production of crude oil and natural gas. The company was established in 1959 and primarily operates in northeastern India and Rajasthan, with international interests in countries like Libya and Nigeria.
Oil India’s business model focuses on upstream oil and gas activities which include transportation and production of liquefied petroleum gas. They are also involved in renewable energy projects and hold stakes in various subsidiaries, by improving their operational capabilities. With a Maharatna status, it aims to ensure energy security while expanding its global footprint.
Financials & Ratios
Its Revenue from operations declined by 3.3 percent year on year from Rs. 7,497 Crores in Q2FY24 to Rs. 7,247 Crores in Q2FY25, accompanied by profits of Rs. 640 Crores to Rs. 2,069 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 19.85 percent and a return on capital employed (ROCE) of 18.12 percent. It has reported a debt-to-equity ratio of 0.49.
Shareholding Pattern
As of September 2024, the shareholding pattern with promoters stake holding a major share of 56.66 percent in Oil India, Foreign Institutional Investors (FII) holding around 10.58 percent, Domestic Institutional investors (DII) standing at 16.43 percent, Government holding around 9.87 percent, and public holdings standing at 6.46 percent.
Written by Santhosh S
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