- ONGC's net profit more than doubled in the June-end quarter, rising over 112% year-over-year to ₹17,034 crore, driven by a significant increase in crude price realisations and new well gas.
- Net crude oil price realisations increased by 50.4% to $99.45 per barrel, contributing significantly to the profit surge.
- Gross revenues rose 45.2% year-over-year to ₹46,460 crore, reflecting strong performance in the quarter.
- Operating margin expanded sharply to 61%, compared to 35.3% in the previous quarter, exceeding market expectations.
- New well gas contributed significantly to earnings, generating ₹3,998 crore in revenue during the quarter.
- ONGC's production of crude oil and natural gas remained nearly flat at 4.452 million metric tonnes (MMT) and 4.756 billion cubic metres (BCM) respectively, compared to the same period last year.
- Production challenges were noted due to reservoir complexities and rough sea conditions, but ONGC remains optimistic about reversing the production decline through strategic projects.
ONGC's net profit more than doubled in the June quarter, reaching ₹17,034 crore, a 112% increase year-over-year, driven by a 50.4% rise in crude price realisations to $99.45 per barrel.12
Gross revenues also saw a significant increase, rising 45.2% to ₹46,460 crore. Despite production remaining flat at 4.452 million metric tonnes of crude oil and 4.756 billion cubic metres of natural gas, ONGC's performance exceeded market expectations, attributed to premium-priced new well gas which generated ₹3,998 crore in revenue.46
The company reported a 61% operating margin, up from 35.3% in the previous quarter, and above the Street estimate of 59%. ONGC's earnings from gas produced at legacy fields rose 5.4%, while earnings from newer deepwater acreage jumped 61.5%.5
ONGC's production challenges stemmed from reservoir complexities and rough sea conditions, but the company remains optimistic about reversing the production decline through strategic projects like the Daman Upside Development Project and Discovered Small Fields initiative. The company is also investing ₹40,000 crore in offshore projects, aiming to enhance its production capabilities.789
ONGC, which supplies about two-thirds of India's oil and over half of its gas, is crucial for reducing the country's import dependence, especially as India continues to import nearly 90% of its oil and about half its gas.
“ONGC's standalone net profit rose to ₹17,034 crore for the June quarter, beating the CNBC-TV18 poll estimate of ₹13,787 crore. Revenue jumped 45.2% year-over-year to ₹46,460 crore, but standalone oil and gas output fell 3.4% to 9.4 million metric tons of oil equivalent as aging fields declined.”
CNBC TV18
Crude Oil Prices Today | OilPrice.com
