ONGC Q2 Results: Profit Down 20.3% On Lower Crude Oil Sales, Realisation

• Revenue from operations fell 8.3% to Rs 35,163 crore.

• Ebitda or operating profit rose 6.4% to Rs 17,118 crore.

• Ebitda margin at 48.68% vs 41.99% a year ago.

• Realisation on per barrel of crude from nominated fields dropped 11.2% to $84.84 from $95.50 per barrel a year ago.

• In rupee terms, the realisation was lower by 8% to Rs 7,013 per barrel as compared with Rs 7,622 per barrel a year ago.

• Realisation for crude oil from joint venture partners was down 16.4% YoY to $79.41 from $94.96 per barrel a year ago.

Consolidated Highlights

• Revenue from operations fell 10.4% to Rs 1,46,874 crore.

• Ebitda dropped 6.2% to Rs 28,255.3 crore.

• Margin at 19.23% vs 18.37%, up 86 bps.

• Reported profit dropped 4.8% to Rs 16,553 crore.

Total crude oil production was down 2.1% YoY to 5.249 million tonne from 5.360 MT a year ago.

"The decline in production output can primarily be attributed to decline in some of the matured fields and marginal fields," the company said in a statement.

ONGC is taking proactive steps to counter the decline by implementing well interventions and advancing new well drilling activities within these fields, it said.

The company also undertook a shutdown of operations in the Panna Mukta basin for commissioning of a new oil pipeline, where the company modernised offshore facilities and bolstered the evacuation capacities. "The shutdown resulted in a temporary loss of production," it said.

Cyclone Biparjoy, that struck in June, has also impacted the production. It disrupted both offshore and onshore production operations.

The ONGC board has also approved an interim dividend of Rs 5.75 that will account for a total payout of Rs 7,234 crore. The record date for distribution of dividend is Nov. 21.