ONGC reports 17.1% rise in Q2 net profit

New Delhi: State-owned Oil and Natural Gas Corporation (ONGC), India’s leading energy producer, reported robust financial results for the second quarter (Q2) of the fiscal year 2024-25 at its 388th board meeting held on Monday. ONGC’s standalone net profit surged by 17.1 per cent year-on-year to reach Rs 11,984 crore, up from Rs 10,238 crore in Q2 FY24.

This positive performance has been accompanied by the announcement of an interim dividend of Rs 6.00 per share, amounting to a total payout of Rs 7,548 crore. Shareholders on record as of November 20 will be eligible for this dividend.

The company’s gross revenue in Q2 FY25, however, saw a slight dip, reaching Rs 35,162 crore, a decrease of 3.6 per cent compared to the previous year. Despite this, ONGC recorded a modest increase in its half-year revenue, reporting a 0.2 per cent rise year-on-year.

The standalone net profit for the first half of FY25 reached Rs 20,922 crore, up from Rs 20,765 crore in FY24, showing a steady financial performance amid global energy price fluctuations.

In terms of crude oil price realizations, ONGC reported an average price of $78.33 per barrel for Q2 FY25, a 7.7 per cent decline from the previous year.

The realization in Indian Rupees was recorded at Rs 6,561 per barrel, down by 6.4 per cent. For ONGC’s consolidated financial performance, the gross revenue increased by 7.3 per cent year-on-year, totaling Rs 1,47,614 crore in Q2 FY25.

The half-year consolidated revenue rose by 4 per cent.

Notably, consolidated net profit decreased significantly, reaching Rs 10,272 crore, a 38.9 per cent drop from the Rs 16,171 crore posted in Q2 FY24.

The production performance on a standalone basis saw crude oil production, excluding condensate, at 4.576 million metric tonnes (MMT) in Q2 FY25, a 0.7 per cent increase from the same period last year.

Cumulatively, the first half of FY25 recorded crude oil production of 9.204 MMT, marking a 0.8 per cent year-on-year rise.

Gas production also showed improvement, with the decline rate reduced to 2.1 per cent in Q2 FY25, compared to a 3.6 per cent decline in Q1. In September 2024, gas production posted a slight 0.3 per cent year-on-year increase, driven by three newly operational oil wells as of October 30, which contributed to raising total oil production to approximately 25,000 barrels of oil per day (BOPD) from Cluster-II’s eight flowing wells.

In exploration, ONGC has made six significant discoveries in the fiscal year to date, including three onshore and three offshore finds. Among these, the “Chola” discovery in the Cauvery Offshore area stands out, with initial tests showing substantial flows of gas and condensate. A second well, Kamakshi#1, is under development within the same block. Further bolstering its resource base, ONGC also gained approval from the Indian government for a Rs 18,365 crore investment in ONGC Petro-additions Limited (OPaL), which will increase ONGC’s stake from 49.36 per cent to 95.69 per cent, positioning it as the dominant shareholder.

Strategic developments have also marked ONGC’s operations in the natural gas sector. The corporation recently signed Liquefied Natural Gas (LNG) Master Sale and Purchase Agreements with Emirates National Oil Company and Gunvor Singapore to strengthen its LNG sourcing capabilities.

ONGC has successfully entered the Regasified Liquefied Natural Gas (RLNG) market, achieving sales of over 32 million metric standard cubic meters per day (MMSCMD) through the Indian Gas Exchange.

The Cambay Asset, another area of focus, achieved a record oil production of 1,018 tonnes per day (TPD), while new discoveries have been rapidly monetized, including the C-22 P well head platform.

Adding to its operational milestones, ONGC has received a series of prestigious awards recognizing its commitment to environmental stewardship and safety.

Among these accolades are the Global Energy and Environment Award for waste and recycling initiatives, Mines Safety Awards 2024 for excellence in oil mine safety, and the 14th Annual EEF Global Environment Award 2024 in the Platinum category.

Additionally, ONGC was honored with the Transform HSE 2024 Award for Industrial Safety in Oil Production and the Blue Planet Award 2024 for Sustainability Excellence in Exploration and Production (E&P) Operations.

ONGC also received recognition for its achievements in CSR practices and sustainability reporting, including the Public Procurement Project of the Year award.

Reflecting on the results, ONGC’s senior leadership noted that the Q2 FY25 performance exemplifies the company’s commitment to growth, innovation, and sustainability in India’s energy sector.

Through targeted investments in exploration, sustainable practices, and new LNG marketing initiatives, ONGC continues to strengthen its position within the global energy landscape, navigating challenges and capitalizing on emerging opportunities.

The company’s strategic focus on both conventional and sustainable energy sources reflects a vision for long-term resilience and alignment with India’s energy security and environmental goals.

Overall, ONGC’s Q2 FY25 results underscore its steady performance and resilient production strategies, as well as its enhanced stake in OPaL, which reinforces the company’s integrated business model.

With growing exploration successes and significant advancements in sustainable practices, ONGC is well-positioned to maintain its role as a leading player in India’s oil and gas industry, even as it ventures into the LNG and RLNG segments.