ONGC Q1 Results: Profit drops 34% YoY to Rs 10,015 crore on lower prices

New Delhi: Oil and Natural Gas Corp’s (ONGC) quarterly profit fell 34% to Rs 10,015 crore from a year earlier on a sharp drop in oil prices.

Revenue for the April-June quarter fell 20% year-on-year to Rs 33,814 crore. The average oil price realized from nomination fields was 29.5% down from a year earlier to $ 76.49 per barrel during the quarter. In rupee terms, the realization was 25% lower at Rs 6,288 per barrel. Oil price realization from joint venture fields fell 31% to Rs 5,808 per barrel.

Oil prices were extraordinarily high in the April-June quarter of 2022 due to the deep uncertainties unleashed by the Russia-Ukraine war and the Western sanctions. Oil prices have now normalized.
The company, however, witnessed a 10% year-on-year rise in the natural gas price to $6.71 per mmBtu during the April-June quarter.

Profit was also hurt by a drop in production. Both oil and natural gas output fell 3% each from a year earlier while the production of value-added products slipped by 10%. Production was affected by a planned shutdown in Panna-Mukta offshore platforms for the commissioning of a new crude oil pipeline and also due to cyclone Biparjoy, the company said.

Ahead of earnings, ONGC shares closed 0.81% lower at 177.15 apiece on Friday when the benchmark Sensex ended 0.56% lower.