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ONGC slides after Q3 PAT drops 13% YoY to Rs 9,536 crore

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Last Updated : Feb 12 2024 | 11:31 AM IST

Oil and Natural Gas Corporation's (ONGC) declined 2.81% to Rs 259.65 after the company's standalone net profit dropped 13.66% to Rs 9,535.67 crore in Q3 FY24 as compared with Rs 11,044.73 crore posted in Q3 FY23.

Revenue from operations declined 9.83% year on year (YoY) to Rs 34,788.07 crore in the quarter ended 31 December 2023.

The firm reported profit before tax of Rs 12,134.74 crore in Q3 FY24, down 17.29% as compared Rs 14,672.04 crore posted in same period a year ago.

The company's net crude oil price realization was $81.59 per barrel (down 6.4% YoY) and gas price realization was $6.50 per mmbtu (down 24.2% YoY) during the period under review.

ONGC's crude oil production declined 2% YoY to 4.552 metric million tonnes (MMT) in Q3 FY24. Gas production during the quarter was 4.962 billion cubic meters (BCM), down by 3.8% on YoY basis.

On consolidated basis, the firm's net profit tumbled 99.09% to Rs 10,356.44 crore on 2.15% decline in revenue from operations to Rs 1,65,569.06 crore in Q3 FY24 over Q3 FY23.

On nine months basis, the company's standalone net profit slipped 23.82% to Rs 29,767.03 crore on 12.96% decline in net sales to Rs 1,03,765.44 crore in 9M FY24 over 9M FY23.

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To counter the decline in production from some of the matured and marginal fields, ONGC is taking proactive steps by implementing well interventions and advancing new well drilling activities. The decline in production from matured fields will be compensated in upcoming quarters with commencement of additional production from upcoming projects, which are under various stages of development; Crude oil production already commenced from KG 98/2, it added.

Meanwhile, the company's board has declared second interim dividend of Rs 4 per equity share for the financial year 2023-24. Saturday, 17 February, 2024 has been fixed as record date and the second interim dividend will be paid to the eligible shareholders on or before 10 March 2024.

Further, the companys board of directors has approved the appointment of K. C. Ramesh as chief financial officer (CFO), key managerial personnel of the company with immediate effect.

Maharatna Oil and Natural Gas Corporation (ONGC) is the largest crude oil and natural gas company in India, contributing around 71% to Indian domestic production. It has in-house service capabilities in all areas of exploration and production of oil & gas and related oil-field services. The Government of India held 58.89% stake in ONGC as of December 2023.

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First Published: Feb 12 2024 | 10:43 AM IST

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