Oil and Natural Gas Corp. Ltd. (ONGC) has reported INR 57,101 crore ($6.9 billion) in net profit for financial year (FY) 2024, the highest in the history of the Indian state-owned integrated energy company, despite weaker production and prices.
Petroleum production fell 1.6 percent to 21.1 million tons while gas output decreased 3.3 percent to 21.4 billion cubic meters (755.7 billion cubic feet). However, in the FY2024 fourth quarter, ONGC’s crude oil production increased 2.4 percent compared to the same three-month period a year ago to 5.2 million tons. Quarterly gas production dropped three percent year-on-year to 5.3 billion cubic meters (187.2 billion cubic feet), according to the company’s quarterly financial report.
On March 2 Prime Minister Narendra Modi dispatched the first crude from ONGC’s Krishna Godavari deepwater block, which ONGC expects to add seven percent to the South Asian country’s oil and gas production at peak rate, ONGC said in a statement at the time.
ONGC’s annual average realized prices for oil and gas both declined.
In exploration in FY2024, ONGC declared 11 discoveries—six onshore and five offshore—in its operated acreages. It drilled 541 wells, the highest in the last 34 years. Of these, 438 were development wells, the company said.
ONGC held 47 million tons of oil equivalent in proven and probable reserves as of the end of the fiscal year.
Downstream, ONGC subsidiary Hindustan Petroleum Corp. Ltd. (HPCL) achieved its highest ever sales volume of 46.8 million tons, up 7.8 percent. HPCL’s throughput climbed 17 percent to 22.33 million tons, its highest ever.
HPCL’s average gross refinery margin fell to $9.08 a barrel from $12.09, “in line with the trend of international product cracks”, ONGC said.
ONGC has increased its fuel retail outlets to 22,022 as of the FY2024 fourth quarter.
Capital expenditures totaled INR 37,000 crore ($4.4 billion), “achieving highest ever utilization (excluding acquisitions) in a financial year for strengthening the growth prospects of the Company”, ONGC said.
ONGC collected INR 643,037 crore ($77.2 billion) in total revenue, down 6.1 percent. For dividends, ONGC expects to distribute a total of INR 15,411 crore ($1.9 billion) comprising INR 9.75 ($0.12) per share already paid and INR 2.5 ($0.03) per share in final dividend recommended by its board.
On Tuesday, after it announced its financial results, ONGC closed higher at INR 280.1 ($3.36).
ONGC ended the year with INR 65,741.6 crore ($7.9 billion) in current assets including INR 34.6 crore ($4.2 million) in cash and cash equivalents. Meanwhile its current liabilities stood at INR 41,568.5 crore ($5 billion) including INR 2,121 crore ($254.7 million) in borrowings.
In decarbonization efforts ONGC during the FY2024 signed a joint venture agreement with NTPC Green Energy Ltd. for the development of renewable energy projects, mainly offshore wind. It also entered an agreement with TotalEnergies SE to hold methane emission monitoring and reduction campaigns.
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