ONGC Q2 net profit jumps 57% on higher crude, gas realisations

State-owned Oil and Natural Gas Corporation (ONGC) reported a 57.3% year-on-year (YoY) surge in standalone net profit to ₹15,489 crore for the quarter ended September, supported by higher realisations from crude oil and natural gas.

The company also declared an interim dividend of ₹8 per equity share.

ONGC’s crude oil realisation rose to $92.33 per barrel from $67.34 a barrel in the year-ago quarter. Gas prices from nominated fields increased to $7 per million British thermal units (MMBTU) from $6.75 per MMBTU.

Realisation from new-well gas, previously identified by Chairman Arun Kumar Singh as a key driver of profitability going ahead, climbed to $10.24 per MMBTU against $8.36 per MMBTU a year earlier.

Revenue for the quarter grew 32.8% YoY to ₹43,875 crore.

However, production remained under pressure. Standalone crude oil output declined 4.2% to 4.437 million metric tonnes (MMT), while natural gas production fell 1.6% to 4.839 billion cubic metres (BCM).

Explaining the production dip, ONGC said, “The year-on-year moderation in quarterly production was primarily attributable to reservoir behaviour complexities in KG-98/2 Asset in Eastern Offshore Basin, coupled with monsoon related operational challenges and associated delays in PRP-8 and PRP-9 (Pipeline replacement projects).”

The company added that onshore gas production was affected by lower customer offtake and disruptions at certain major consumer facilities, which temporarily dampened demand.