Oil and Natural Gas Corporation (ONGC), India’s leading oil and gas exploration company, has announced a decline of approximately 7.9 percent in consolidated net profit for the third quarter of the financial year 2023-24. The company reported a net profit of Rs 10,748 crore for the December quarter, down from the previous year’s figures.
In addition to the drop in net profit, ONGC recorded a 2.2 percent decrease in revenue from operations during the third quarter, amounting to Rs 1,65,569 crore. This decline is in contrast to the revenue figures recorded in the same period of the previous fiscal year.
Despite the challenging financial results, ONGC remains committed to delivering value to its shareholders. The company declared a second interim dividend of Rs 4.00 per share, which will be disbursed to eligible shareholders on or before March 10, 2024.
In terms of production, ONGC faced a decline in total crude oil production during the third quarter, slipping 3.3 percent from the previous year to 5.2 million metric tonnes (MMT). This trend continued in the first nine months of the fiscal year, with a 2.9 percent decline in total oil production.
The company attributed the decline in output to various factors, including shutdowns in offshore platforms, cyclone impacts, and natural decline from mature fields. To address this issue, ONGC has implemented proactive measures such as well interventions and advancing new well drilling activities. Additionally, the company expects oil production commencement from the KG-DWN-98/2 block to help arrest the decline.
ONGC’s gas production also experienced a decline of 4.5 percent in the third quarter compared to the previous year.
Despite these challenges, ONGC remains a significant player in India’s oil and gas sector, representing 67 percent of the country’s oil and 54 percent of its gas production. The company has outlined an annual expenditure plan of approximately Rs 30,000 crore to drive further growth and mitigate production challenges.
“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,” stated the company.
ONGC’s strategic initiatives and ongoing efforts aim to ensure sustainable growth and strengthen its position in India’s energy landscape amidst evolving market dynamics.
