ONGC Q1 Results: Revenue drops 10%, net profit soars to Rs 17,383 crore

For the first quarter that ended June 30, 2023, the state-owned Oil and Natural Gas Corporation (ONGC) Ltd. reported a 102% YoY increase in consolidated net profit at Rs. 17,383 crore.

Oil and Natural Gas Corporation had a net profit of Rs 8,581 crore for the comparable period last year, the company said in a regulatory filing. 

In comparison to the same period of the previous fiscal, when the consolidated revenue from operations stood at Rs 1.82 lakh crore, it decreased by 10% to Rs 1.63 lakh crore during the period under review.

In comparison to the same period last year, the company's crude oil output fell by 3.3% to 5.311 million metric tons (MMT), from 5.495 MMT. In addition, compared to last year's quarter, gas output was down 3%.

In Q1 of FY24, Panna-Mukta offshore platforms were shut down for the completion of a new crude oil pipeline in order to modernize the business's evacuation facilities after taking over from JV partners, according to ONGC. This resulted in a decrease in production output for the company.

The company added that the drop was caused by storm Biparjoy (June 2023) interrupting offshore and onshore production and that crude oil wells in southern India had to be shut down because a refinery there ceased receiving oil as a result of a leak in their pipeline.

By executing well interventions and progressing new well-drilling activities, ONGC is taking proactive measures to mitigate the reduction in output from some of the matured and marginal fields.

The present output drop is only temporary. The same will be compensated for in the following quarters by the beginning of the extra output from new projects, particularly by the initiation of crude oil production from KG 98/2 in Q3 2023–2024.

In its operated acreages, the company announced four discoveries during the first quarter of FY24, including one on land and three offshore. Three of them are offshore prospects, while one is an on-shore pool discovery. One discovery, Gopavaram-21, has already been monetized by ONGC out of the four discoveries that have been officially notified in FY24.

Content source: Media reports