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ONGC Profit More Than Doubles on 50% Jump in Oil Realisations
ONGC's net profit more than doubled to ₹17,034 crore as crude realisations surged 50% to $99.45/bbl. Production flat, but company expects reversal via new projects.
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Oil and Natural Gas Corporation’s net profit more than doubled in the June quarter, driven by a sharp rise in crude price realisations that offset flat production.
The state-owned explorer reported net profit of ₹17,034 crore for the three months ended June 30, up 112% from the same period a year earlier. Gross revenues rose 45.2% to ₹46,460 crore.
The driver was net crude oil price realisations, which jumped 50.4% to $99.45 per barrel. That is the average price the company receives for each barrel it sells. The gain came even as ONGC’s standalone crude oil production slipped slightly to 4.452 million metric tonnes from 4.683 MMT a year earlier. Natural gas output fell to 4.756 billion cubic metres from 4.846 BCM.
ONGC said it expects to arrest the production decline and reverse it through a series of strategic projects. The company cited the Daman Upside Development Project, as well as the TSP and DSF developments, as key to lifting output.