ONGC shares slide 1.3% on weak Q3 earnings

Shares of Oil and Natural Gas Corp Ltd fell 1.3 percent after the upstream company reported weaker earnings. Analysts are awaiting its investors call which is scheduled on February 12 after 3.30pm.

At 9.30am, the stock was trading at Rs 262 on the BSE, down 1.3 percent from its previous close. It opened nearly 1.5 percent lower intraday.

The company's consolidated net profit dropped by 8 percent to Rs 10,748 crore in the December quarter, with revenue falling 2.2 percent to Rs 1,65,569 crore over the previous year.

Crude oil production decreased by 3.3 percent in Q3, and total oil production in the first nine months of FY24 declined 2.9 percent. The decline is attributed to factors like platform shutdowns, cyclone Biparjoy, and natural field decline. ONGC plans proactive measures, including interventions and new drilling, to counter the decline in output.

The company expects oil production from KG-DWN-98/2 block to offset the decline. ONGC represents a significant portion of India's oil and gas production and has a Rs 30,000 crore annual expenditure plan for further growth.

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