ONGC’s net profit fell by over 34 per cent in the June quarter because of a fall in crude oil prices and lower output. Net profits amounted to Rs 10,015 crore in the April-June quarter compared with Rs 15,206 crore profit in the same period last year, the company said in a statement.
ONGC, the top crude oil and natural gas producer, earned $76.49 for every barrel of crude oil it produced and sold from nomination fields against a net realisation of $108.55 per barrel last year.
Oil prices globally had risen sharply in April-June 2022 after Russia’s invasion of Ukraine led to uncertainties over supply and demand.
However, consolidated net profits surged to 102 per cent at Rs 17,383 crore compared with Rs 8,580.75 crore in the corresponding period last year.
ONGC’s revenue from operations during the first quarter of the current fiscal stood at Rs163,823 crore, registering a decline of 10 per cent, compared with Rs 182,894 crore in the year-ago period.
Crude oil output of the oil marketing company declined 3.3 per cent to 5.311 million tonnes (mt) compared with 5.495 mt in the year-ago period. Similarly, gas output was 3 per cent lower in the June quarter at 5.221 BCM, compared with 5.383 BCM last year.
To counter the decline in production from some of the matured and marginal fields, ONGC is implementing well interventions and advancing new well-drilling activities.
“The current decline in production is temporary. The same will be compensated in upcoming quarters with the commencement of additional production from new projects; especially by crude oil production commencement from KG-98/2 in Q3 2023-24,” it added.
