ONGC Q3 Results: Profit Falls 6.7% QoQ, Misses Estimates

The company's oil and gas production for the quarter saw a 3.3% and 4.3% year on year drop.

<div class="paragraphs"><p>Oil &amp; Natural Gas Corporation (Source: ONGC website)</p></div>
Oil & Natural Gas Corporation (Source: ONGC website)

Oil and Natural Gas Corp's net profit fell in the third quarter of fiscal 2024, missing analyst estimates.

The state-run crude oil producer's profit fell 6.7% to Rs 9,535.7 crore in the October- December period, according to an exchange filing on Friday. This compared to the Rs 10,098.8 crore consensus analyst estimates according to Bloomberg

The company's board also declared its second interim dividend of Rs 4 per equity share. The record date set for the same is Feb 17. The board also approved the appointment of KC Ramesh as Chief Financial Officer with immediate effect.

ONGC Q3 FY24 Highlights (Standalone, QoQ)

  • Revenue from operations fell 1.07% to Rs 35,163 crore (Bloomberg Estimate: Rs 34972.1 crore)

  • Ebitda or operating profit fell 13.3% to Rs 14,835 crore (Bloomberg Estimate: Rs 17,588 crore)

  • Ebitda margin down 603 bps at 42.6% vs 48.86% a year ago (Bloomberg Estimate: 50.3%)

  • Net profit fell 6.7% to Rs 9,535.7crore (Bloomberg Estimate: Rs 10,098 crore)

Production Output

The total crude oil production saw a 3.3% year on year drop at 5.219 million metric tonne. Out of the total crude oil produced 7.72% were from ONGC's joint ventures. The total gas production saw a 4.3% year on year dip to 5.125 billion cubic meters.

According to the exchange filling, the reduction in the company's 9MFY24 production output was due to:

  • Shutdown in Panna-Mukta offshore platforms for commissioning of new crude oil pipeline to modernize its evacuation facilities, post taking over from JV Partners.

  • Cyclone Biparjoy (June 2023) disrupted offshore and onshore production.

  • Crude oil production of a Southern Asset was hampered as a refinery stopped receiving oil, following a leakage in their pipeline.

  • Natural decline from Mature fields

The company stated that, "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". The company said that the decline in production from the matured fields will be compensated in upcoming quarters due to the commencement of additional production from upcoming projects, which are under various stages of development. Crude oil production already commenced from KG 98/2.


The crude oil realizations for the quarter stood at $81.59 per barrel, a 6.4% year on year drop. The gas price on GCV basis saw 24.2% year on year drop at $6.5 per million metric British thermal unit due to the revised APM gas policy that capped the realizations on gas.


Oil and Natural Gas Crop, declared a total of 9 discoveries, four onland and five offshore, during FY24 in its operated acreages. Out of these, five are prospects and four in Onland are new pools. ONGC has already monetized six discoveries till date during FY24.

Shares of the company closed 1.85% lower at Rs 268.10 apiece ahead of results on Friday, this compared to the 0.3% rise in the Nifty 50 as of 3:30 p.m. on Friday.