ONGC Q3 results: Net profit shrinks 7.9% to Rs 10,748 cr as production dips

ONGC's total crude production dropped by 3.3 per cent to 5.21 million metric tonnes (MMT), down from 5.39 MMT in Q3 FY23

Oil and Natural Gas Corporation (ONGC) posted a 7.9 per cent decline in its consolidated net profit to Rs 10,748 crore in the third quarter (October-December) of FY24, from Rs 11,665 crore in the corresponding quarter of the preceding financial year.

The state-run oil and gas exploration giant’s total crude production dropped 3.3 per cent to 5.21 million metric tonnes (MMT), down from 5.39 MMT in Q3FY23.

ONGC’s natural gas production declined 4.3 per cent to 5.12 billion cubic meters (BCM) in the latest quarter, down from 5.35 BCM in the corresponding period of the preceding year.

For the first nine months of the ongoing financial year, ONGC blamed the shutdown in Panna-Mukta offshore platforms for the commissioning of a new crude oil pipeline and Cyclone Biparjoy in June 2023, which disrupted offshore and onshore production.

Crude oil production of the southern asset was also hampered as a refinery stopped receiving oil following a leakage in its pipeline.

“The decline in production from matured fields will be compensated in upcoming quarters with the commencement of additional production from upcoming projects, which are under various stages of development,” it said.

Crude oil production already commenced from the company's KG-DWN-98/2 block from January 7, 2024.

The ONGC board has approved a second interim dividend of 80 per cent, or Rs 4 on each equity share of Rs 5. The total payout on this account will be Rs 5,032 crore. The record date for the distribution of the dividend has been fixed at February 17, 2024. This is in addition to the first interim dividend of Rs 5.75 per share (115 per cent) declared in November last year.