ONGC's fourth quarter net profit rises 57% to ₹15,488.64 crore

State-owned Oil and Natural Gas Corporation (ONGC) has reported a year-on-year increase of 57.3% in its standalone net profit for the quarter ended in September. According to reports by Business Standard and The Hindu, the company's net profit rose to ₹15,488.64 crore. The primary reason behind this increase appears to be the high realizations of crude oil and natural gas.

The company's total revenue also grew by 32.8%, reaching ₹43,875 crore. Along with this, the company has announced an interim dividend of ₹8 per share. There has been a significant increase in crude oil realizations, which rose from $67.34 per barrel in the same quarter last year to $92.33 per barrel. Similarly, gas prices from nominated fields increased from $6.75 per MMBTU to $7 per MMBTU. Realizations from gas produced from new wells also rose from $8.36 per MMBTU to $10.24 per MMBTU, which Chairman Arun Kumar Singh described as crucial for future profitability.

However, the company faced challenges in the production sector. Standalone crude oil production fell by 4.2% to 4.437 million metric tonnes (MMT), while natural gas production decreased by 1.6% to 4.839 billion cubic metres (BCM). Regarding this decline in production, ONGC stated that the decrease was due to reservoir behaviour complexities in the KG-98/2 asset of the Eastern Offshore Basin, operational challenges caused by the monsoon, and delays in PRP-8 and PRP-9 (Pipeline Replacement Projects).

Additionally, onshore gas production was also affected. According to the company, a temporary decline in demand was observed due to lower demand from customers and disruptions in some key customer facilities, which impacted the production process.

Oil and Natural Gas Corporation (ONGC) is a state-owned oil and natural gas company of India. It is primarily engaged in the exploration, production, and infrastructure activities of oil and gas.