ONGC net profit rises 3.1% in March-end quarter amid better crude price realisations

State-owned explorer and producer Oil and Natural Gas Company (ONGC)’s standalone net profit in the March-end quarter increased 3.1% from the comparable period last year supported by better crude price realisations.

The Delhi-headquartered explorer-producer posted a standalone net profit of ₹6,650 crore, compared to ₹6,448 crore it had posted in the same quarter last year.

Net crude price realisation, that is, the price an explorer-producer receives for every barrel of crude oil extracted, increased 6.2% from the comparable period last year to $78.32 per barrel in the reported quarter.

ONGC’s gross revenue increased 2.7% to ₹35,927 crore during the mentioned period.

Alongside the results, ONGC also declared a dividend of ₹1 per equity share subject to shareholder approval at the annual general meeting (AGM).

As for the physical performance, ONGC’s crude oil production, on a standalone level, declined 5.3% on a year-over-year basis to 4.449 MMT in the March-end quarter.

Natural Gas production also declined about 2.3% to about 4.78 billion Cubic Meters during the mentioned period.

“Geological surprises arising out of reservoir complexities affected the production from 98/2 Field in Eastern Offshore. West Asia crisis also affected pipeline replacement project and DUDP project affecting the oil and gas production from Western Offshore,” it stated, adding, “Further, some production got affected for a brief spell of time due to hook up operation of pipeline, compressor and turbines in two existing wells and surface facilities in Western offshore.”