ONGC Q3 Results: Net profit drops 7.9% to Rs 10,748 cr, revenue falls 2.2% YoY

Oil and Natural Gas Corporation (ONGC) posted a decline of around 8 percent in consolidated net profit at Rs 10,748 crore in the December quarter of the financial year 2023-24.

The oil and gas exploration giant reported a 2.2 percent decrease in revenue from operations for the third quarter of the current fiscal year, amounting to Rs 1,65,569 crore. This is in contrast to the Rs 1,69,213 crore recorded in the same period of the previous year.

ONGC also declared the second interim dividend of Rs 4.00 per share, which will be paid to eligible shareholders on or before March 10, 2024.

In the third quarter, the company’s total crude oil production slipped 3.3 percent from last year at 5.2 million metric tonnes (MMT). Meanwhile, ONGC’s total oil production in the first nine months of FY24 declined 2.9 percent.

The company said decline in output in the nine months was due to shut down in Panna-Mukta offshore platforms for commissioning of new crude oil pipeline, cyclone Biparjoy and natural decline from mature fields.

ONGC said it is taking proactive steps by implementing well interventions and advancing new well drilling activities to counter the decline in output. The company also expects oil production commencement from KG-DWN-98/2 block to arrest the decline. On January 7, ONGC announced successful commencement of oil production from its block in the Krishna Godavari basin.

ONGC represents 67 percent of India's oil and 54 percent of its gas production. The company has devised an annual expenditure plan of approximately Rs 30,000 crore to drive further growth.

“To counter the decline in production from some of the matured and marginal fields, ONGC is taking proactive steps by implementing well interventions and advancing new well drilling activities,” the company said.

Meanwhile, ONGC total gas production in Q3 declined 4.5 percent from the previous year.