ONGC Q4 Results: Profit Tops Estimates, Production Rises 2.4% Sequentially

Oil and Natural Gas Corp.'s standalone net profit fell 0.23% in the fourth quarter of financial year 2024, but surpassed analysts' estimates.

The state-run crude oil producer's profit declined to Rs 9869.37 crore in the January–March period, according to an exchange filing on Monday. Analysts tracked by Bloomberg had a consensus estimate of Rs 9,158.1 crore.

The company's board also recommended a final dividend of Rs 2.50 per equity share for the financial year 2024.

• Revenue from operations fell 0.44% to Rs 34636.69 crore (Bloomberg Estimate: Rs 34,956.5 crore)

• Ebitda or operating profit rose 3.63% to Rs 15890.73 crore (Estimate: Rs 17,043.1 crore)

• Ebitda margin expands 180 basis points to 45.88% vs 44.08% (Estimate: 48.8%)

• Net profit fell 0.23% to Rs 9869.37 crore (Estimate: Rs 9,158.1 crore)

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• Revenue from operations fell 11.01% to Rs 1,38,402.13 crore.

• Ebitda or operating profit fell 8.74% to Rs 66,815.04 crore.

• Margin at 48.28% vs 47.08%.

• Net profit rose 1.07% to Rs 40,525.96 crore.

The fall in the oil producer's March quarter revenue was led by a drop in revenues sequentially in both onshore and offshore segments.

Oil and Natural Gas Corp's onshore revenues fell 1.9% on a sequential absis during January-March period, while the offshore segment's revenue fell 0.24%

Oil and Natural Gas Corp's total crude oil production stood 2.4% higher quarter-on-quarter at 5.359 million metric tonnes during March quarter.

Total gas production in the period were 3% lower on a sequential basis at 5.101 billion cubic meters.

Volumes of the value added products stood 2.3% higher sequentially at 626 kiliotonnes

For the fiscal 2023-24, Oil and Natural Gas produced a total of 7.178 million metric tonnes of oil, a 13.1% year- on- year increase.

Total gas production for the fiscal saw a a 12.6% year-on-year drop to 3.34 billion cubic meters.

Net realization on crude oil from nominated fields stood 4.8% higher in January-March period at $80.81 per barrel, while realisation's from crude oil produced from joint ventures stood at $76.84 per barrel.

The gas price realizations saw a 24.2% dip quarter-on-quarter at $6.5 per million metric British thermal unit due to the change in the ceiling price.

Oil and Natural Gas Corporation declared 11 discoveries during financial year 2024. Out of these 6 discoveries are prospects while 5 and new pool discoveries, stated the company in its press release.

The company also noted that 7 hydrocarbon discoveries have been monetized during the fiscal.

The oil producer spent a total of Rs 37000 crore in capital expenditure in the financial year-ended March 2024, 22.5% higher than the previous fiscal.

The total reserve acreation of the ONGC group stands at 47.044 million metric ton of oil equivalent. Out of the total 47.044 MMTOE, 46.567 MMTOE are domestic while the remainder are ONGC Videsh's share in foreign assets.