State-run Oil and Natural Gas Corporation (ONGC), has reported an almost 10 per cent y-o-y decline, in its consolidated net profit at ₹10,356 crore in Q3 FY24 due to decline in realisations.
On a sequential basis, the net profit of the exploration and production (E&P) major fell, 37 per cent from ₹16,553 crore in Q2 FY24. The company’s results were announced late on Saturday night.
The Maharatna company’s consolidated profit, was lower on an annual basis at ₹1.66 lakh crore during the December quarter, in the current financial year.
ONGC board approved the second interim dividend of ₹4 on each equity share of ₹5. The total payout on this account will be ₹5,032 crore. The record date for distribution of dividend has been fixed for February 17, 2024. This is in addition to the first interim dividend of ₹5.75 per share declared in November 2023.
Operational metrics
ONGC’s total crude oil production in Q3 FY24, fell by 3.3 per cent y-o-y to 5.219 million tonnes, or MT, (Q2 FY24: 5.249 MT). Gas production fell by 4.3 per cent, y-o-y to 5.125 billion cubic meters, or BCM, (Q2 FY24: 5.2 BCM).
Production of value added products fell 4.5 per cent y-o-y to 6,13,000 tonnes in the last quarter.
The reduction in ONGC’s production output in 9M FY24, was due to a shutdown in Panna-Mukta offshore platforms, for commissioning of a new crude oil pipeline, to modernise its evacuation facilities, post taking over from JV Partners. Cyclone Biparjoy (June 2023), disrupted offshore and onshore production, the company said.
Crude oil production of a Southern Asset was hampered, as a refinery stopped receiving oil, following a leakage in their pipeline which was a natural decline from mature fields, it added.
The crude oil price realisation from the nominated fields, fell 6.4 per cent y-o-y to $81.59 per barrel. Realisation from JV fields, fell 10.1 per cent y-o-y to $76.44 per barrel.
Exploration
ONGC, has declared a total of nine discoveries, (four in Onland and five in Offshore), during FY24, in its operated acreages. Out of these, five are prospects (Offshore) and four in Onland are New Pools.
ONGC monetized six discoveries till date during FY24, Gopavaram-21, South Mahadevapatinam-2, Karugorumilli-1, Gojalia-13, KG-DWN-98/2–M-1(Padmawati) and KG-DWN-98/2–M-3.