State-owned ONGC’s operating cash flows will rise over the next 12-24 months due to higher production volumes, stable earnings from domestic gas production, and the removal of a windfall tax on crude oil, S&P Global Ratings said on Friday.
“This should help the company maintain its good credit quality, despite its investment plans and healthy shareholder distributions,” the rating agency said in a statement.
ONGC is India’s largest oil and gas producer.
“We estimate that ONGC’s domestic production volumes will rise by 8-10 per cent for fiscal 2024 (year ending March 31). The increase is attributable to the start of oil production from its block in the Krishna Godavari basin later this year,” S&P said.
