ONGC’s net profit more than doubles with spike in net crude price realisations

State-owned explorer Oil and Natural Gas Corporation’s (ONGC) net profit more than doubled in the June-end quarter fuelled by a more-than-half times increase in net crude price realisations.

The Delhi-headquartered explorer’s net profit rose more than 112% on a year-over-year basis to ₹17,034 crore.

This was led by net crude oil price realisations, that is, the average price an explorer receives for each barrel of oil it sells, increasing 50.4% to $99.45 per barrel.

Gross revenues increased 45.2% on a year-over-year basis to ₹46,460 crore.

ONGC’s standalone production of crude oil and natural gas stayed nearly flat in the reported quarter from the comparable period last year at 4.452 million metric tonnes (MMT) and 4.756 billion cubic metres (BCM).

Oil production stood at 4.683 MMT and natural gas at 4.846 BCM in the comparable period last year.

The explorer although exuded confidence in arresting the production decline on a year-over-year basis.

“The production decline trend is expected to be arrested and progressively reversed through the successful execution of strategic projects such as Daman Upside Development Project, TSP and DSF,” it held.