ONGC's Q4 net profit soars 78% to ₹11,526 crore
Oil and Natural Gas Corporation (ONGC), the state-owned oil and gas exploration giant, has reported a significant 78% increase in its consolidated net profit for the fourth quarter of FY24. The net profit stood at ₹11,526.53 crore, a substantial rise from ₹6,478.23 crore recorded during the same period last year. Sequentially, there was a marginal increase in net profit from ₹11,104.50 crore posted in Q3 FY24.
Slight revenue increase and decrease in crude oil production
ONGC's revenue from operations saw a slight increase during the January-March 2024 period, amounting to ₹1.66 lakh crore, compared to ₹1.64 lakh crore recorded in the same period of the previous year. However, despite government calls for boosting domestic production to reduce reliance on imports, ONGC reported a 1.6% slide in crude oil production in FY24 from last year. This comes amidst efforts to enhance domestic output and lessen import dependency.
ONGC's EBITDA and dividend announcement for FY24
ONGC's earnings before interest, tax, depreciation and amortisation (EBITDA) for Q4 rose to ₹25,772 crore from ₹15,752 crore during the corresponding period last year. The company's board of directors recommended a final dividend of ₹2.50 per equity share of face value of ₹5 each for FY24, subject to shareholder approval. This announcement comes as part of the company's financial report for the fourth quarter.
ONGC's crude oil price realisation and production
Crude oil price realisation from ONGC's nominated fields was $80.81 per barrel for Q4, compared to $77.12 per barrel for the same period last year. The company's total crude oil production increased by 2.4% in Q4 from last year at 5.359 MMT (million metric ton). However, its total oil production in FY24 declined by 1.6%, indicating a mixed performance in terms of output.
Decline in ONGC's total gas production in FY24
ONGC's total gas production in Q4 declined by 3% at 5.101 BCM (billion cubic meter) from last year and fell by 3.3% for the full year (2023-24). This decline comes despite the company's efforts to boost its overall output. The figures were released as part of ONGC's financial report for the fourth quarter of FY24.
ONGC's discoveries and record-breaking well drilling in FY24
During FY24, ONGC declared 11 discoveries (six on land and five offshore) in its operated acreages with six prospects (one on land and five offshore) and five new pool (on land) discoveries. The company drilled a record-breaking number of wells—541—which is the highest recorded in the past 34 years. These included 103 exploratory and 438 development wells. This marks a significant achievement for the state-owned oil and gas exploration major.
