ONGC Ltd reported a standalone net profit (PAT) of Rs 248 crore for the fourth quarter ended March 2023 (Q4FY23), marking a 97 percent decline compared to the Rs 8,860 crore profit recorded in the same period of the previous year.
Standalone gross revenue for the state-run oil and gas major increased by 5.2 percent to Rs 36,293 crore from Rs 34,497 crore in the year-ago period.
However, the operating margins for the quarter declined by 800 basis points year-on-year, standing at 48 percent.
The company's Board has recommended a final dividend of Rs 0.5 per equity share for FY 2022-23. The total dividend for FY’23 would be 225% (Rs.11.25 per share of face value Rs 5 each) with a total payout of Rs. 14,153 crore. This includes interim dividend of 215% (Rs. 10.75 per share) already paid during the year.
During FY 2022-23, ONGC announced a total of eight discoveries, with five on land and three offshore. Among these, three are prospects (two on land and one offshore), while five are pools (three on land and two offshore).
ONGC attributed the decline in its net profit to a provision of Rs 12,107 crore made in the quarter. This provision is related to disputed Service tax and GST on royalty and interest from April 1, 2016, to March 31, 2023.
The company stated that this provision was made as a precautionary measure and it intends to challenge these disputed matters in various legal forums based on legal opinions.
The crude oil (Nominated) realisation for the quarter stood at $77.12 per barrel which is down by 18.8 percent compared to the realisation of $94.98 per barrel during the corresponding period last year.
In rupee terms, the average crude realisation was Rs 6,344 per barrel, 11.2 percent down year-on-year (YoY).
Total crude production during the quarter remained at 5.23 million metric tonnes (mmt) compared to 5.39 million metric tonnes (mmt) produced during the same period a year ago.
The gas production during the quarter was down 1.5 percent on-year to 5.26 billion cubic metres (BCM) compared to 5.33 BCM a year ago.
The production of value-added products dipped 18.7 percent on-year to 612 kilotonnes (KT) from 753 KT.
On May 26, ONGC shares closed at Rs 163.75 on the National Stock Exchange, representing a loss of Rs 2.25 (-1.36%) compared to the previous close.