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New Delhi: Flagship explorer ONGC recorded a 20% decline in its second quarter net profit at Rs 10,216 crore compared to Rs 12,826 crore a year ago as a drop in global oil prices coincided with marginally lower production during the July-September period.
Company director (finance) Pomila Jaspal said lower crude prices reduced earning from each barrel to $84.8 against $95.5 in the year-ago period.She expected the situation to reverse in the December quarter with the KG-DWN-98/2 block off the Andhra coast coming onto production this month.
Besides, she said last year earnings were boosted by a Rs 1,900 crore reversal of impairment, while this year there was no such exceptional income.
Global oil prices had surged in the April-June period of 2022 after Russia’s invasion of Ukraine, which led to higher earnings. But prices have fallen this year and were in the $80-90 band during the second quarter.
Sequentially, this is the second consecutive quarter of decline in profit for ONGC, which posted a 34% drop in the April-June period, when realisation per barrel dipped to $76.4 in the preceding quarter.
Gross revenue fell 8.2% to Rs 35,162 crore mainly because it realised lower oil prices. “The reduction in production output can primarily be attributed to decline in some of the matured fields and marginal fields,” the company said.
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New Delhi: Flagship explorer ONGC recorded a 20% decline in its second quarter net profit at Rs 10,216 crore compared to Rs 12,826 crore a year ago as a drop in global oil prices coincided with marginally lower production during the July-September period.
Company director (finance) Pomila Jaspal said lower crude prices reduced earning from each barrel to $84.8 against $95.5 in the year-ago period.She expected the situation to reverse in the December quarter with the KG-DWN-98/2 block off the Andhra coast coming onto production this month.
Besides, she said last year earnings were boosted by a Rs 1,900 crore reversal of impairment, while this year there was no such exceptional income.
Global oil prices had surged in the April-June period of 2022 after Russia’s invasion of Ukraine, which led to higher earnings. But prices have fallen this year and were in the $80-90 band during the second quarter.
Sequentially, this is the second consecutive quarter of decline in profit for ONGC, which posted a 34% drop in the April-June period, when realisation per barrel dipped to $76.4 in the preceding quarter.
Gross revenue fell 8.2% to Rs 35,162 crore mainly because it realised lower oil prices. “The reduction in production output can primarily be attributed to decline in some of the matured fields and marginal fields,” the company said.
We also published the following articles recently
ONGC Q2 net profit drops 20% on lower oil prices, output
State-owned Oil and Natural Gas Corporation (ONGC) reported a 20% decrease in net profit for the September quarter due to lower oil prices and reduced output. The company earned Rs 10,216 crore compared to Rs 12,826 crore in the same period last year. This is the second consecutive quarter of decline for ONGC, India’s top crude oil and natural gas producer. However, the company expects production to increase in the upcoming quarters with the commencement of new projects. ONGC also made five discoveries in its operated acreages during the fiscal year 2023-24.
State-owned Oil and Natural Gas Corporation (ONGC) reported a 20% decrease in net profit for the September quarter due to lower oil prices and reduced output. The company earned Rs 10,216 crore compared to Rs 12,826 crore in the same period last year. This is the second consecutive quarter of decline for ONGC, India’s top crude oil and natural gas producer. However, the company expects production to increase in the upcoming quarters with the commencement of new projects. ONGC also made five discoveries in its operated acreages during the fiscal year 2023-24.
ONGC net slips 20% to Rs 10,216 crore in Q2 on crude price fall
India’s state-owned oil and gas company, ONGC, reported a 20% decrease in net profit in the second quarter due to a drop in global oil prices and lower production. The company’s director of finance, Pomila Jaspal, expects the situation to improve in the December quarter with the start of production in the KG-DWN-98/2 block. ONGC also cited factors such as lower oil prices, matured fields, and disruptions from Cyclone Biparjoy as contributing to the decline in production.
India’s state-owned oil and gas company, ONGC, reported a 20% decrease in net profit in the second quarter due to a drop in global oil prices and lower production. The company’s director of finance, Pomila Jaspal, expects the situation to improve in the December quarter with the start of production in the KG-DWN-98/2 block. ONGC also cited factors such as lower oil prices, matured fields, and disruptions from Cyclone Biparjoy as contributing to the decline in production.
ONGC posts 20% drop in quarterly profit
State-run Oil and Natural Gas Corp (ONGC) reported a more than 20% decrease in second-quarter profit due to lower crude oil prices. The company’s profit fell to Rs 10,216 crore ($1.2 billion) compared to Rs 12,826 crore the previous year. Crude oil price realisation was down 11.2% at $84.84 per barrel, while realisations in joint ventures fell 16.4%. ONGC’s total crude oil production decreased by 2.1% and total gas production dropped by 2.8%. Oil India also reported a more than 80% decrease in second-quarter profit due to ongoing litigation costs.
State-run Oil and Natural Gas Corp (ONGC) reported a more than 20% decrease in second-quarter profit due to lower crude oil prices. The company’s profit fell to Rs 10,216 crore ($1.2 billion) compared to Rs 12,826 crore the previous year. Crude oil price realisation was down 11.2% at $84.84 per barrel, while realisations in joint ventures fell 16.4%. ONGC’s total crude oil production decreased by 2.1% and total gas production dropped by 2.8%. Oil India also reported a more than 80% decrease in second-quarter profit due to ongoing litigation costs.
