ONGC Q1 results: Net profit declines 32.1% to Rs 9,936 crore

State-run Oil and Natural Gas Corporation (ONGC) on Monday posted a 32.1 percent fall in its consolidated net profit (attributable to owners) to Rs 9,936.4 crore in the first quarter (April-June) of the current financial year (FY25). Its net profit was down from Rs 14,644.43  crore in the corresponding quarter of the previous year. 

The country’s largest oil producer saw its profit decline sequentially by 1.6 per cent from Rs 10,107.3 crore in the preceding quarter. The company saw its total revenue rise 1.92 per cent to Rs 1.69 trillion, up from Rs 1.66 trillion registered in Q1FY24. Meanwhile, total expenses swelled by 9.3 per cent to Rs 1.55 trillion, up from Rs 1.42 trillion year-on-year (Y-o-Y).

Under expenses, cost of materials registered the highest rise of 16 percent to Rs 48,165.7 crore. ONGC wrote off Rs 1,679.28 crore as cost incurred in the unsuccessful survey and drilling of wells to find oil and gas. This was 46 per cent higher Y-o-Y.  Its earnings before interest, tax, depreciation and amortisation (Ebitda) for the quarter rose to Rs 18,617.5 crore.

The oil and gas exploration giant’s total crude production was down by 1.4 per cent to 5.23 million metric tonnes (mmt) in the quarter. Natural gas production declined 4.1 per cent to 5 billion cubic metres (bcm) in the same period, down from 5.22 bcm in the corresponding period of the preceding year.

ONGC produces over 1.26 million barrels of oil equivalent per day, contributing around 71 per cent of India’s domestic production. Its wholly-owned subsidiary ONGC Videsh Ltd is the largest Indian multinational, with 35 oil & gas assets across 15 countries.  

ONGC has declared a total of 5 discoveries in FY25 so far. Of these, 2 are prospects, and 1 is a new pool (onland) discovery. The company said the exploratory well PURN-1 was drilled in its CB-ONHP-2019/1 block in Gujarat’s Cambay basin.

First Published: Aug 05 2024 | 9:30 PM IST