ONGC profit slips 32.1% to Rs9,936cr in April-June quarter

Revenue increased 1.92% to Rs1.69 trillion, compared to Rs1.66 trillion in Q1 FY24

MUMBAI: State-run Oil and Natural Gas Corporation (ONGC) reported a 32.1 per cent decline in its consolidated net profit (attributable to owners) to Rs9,936.4 crore for the first quarter (April-June) of FY25, down from Rs14,644.43 crore in the same period last year.

Sequentially, profits were marginally lower by 1.6 per cent, down from Rs10,107.3 crore in the preceding quarter.

The company’s total revenue increased by 1.92 per cent to Rs1.69 trillion, compared to Rs1.66 trillion in Q1 FY24.

Expenses surged by 9.3% to Rs1.55 trillion

However, total expenses surged by 9.3 per cent to Rs1.55 trillion, up from Rs1.42 trillion in the corresponding quarter of the previous year. The cost of materials saw the highest rise, increasing by 16 per cent to Rs48,165.7 crore.

ONGC wrote off Rs1,679.28 crore for unsuccessful survey and drilling of wells to find oil and gas, a 46 per cent increase from Rs1,149.9 crore in Q1 FY24.

Fall in crude production

The company’s total crude production fell by 1.4 per cent to 5.23 million metric tonnes (MMT) during the quarter, while natural gas production declined by 4.1 per cent to 5 billion cubic meters (BCM), down from 5.22 BCM in the same period last year.

As India’s largest oil producer, ONGC produces over 1.26 million barrels of oil equivalent per day, contributing around 71 per cent of the country’s domestic production. Its wholly-owned subsidiary, ONGC Videsh Ltd. (OVL), is the largest Indian multinational, with 35 oil and gas assets in 15 countries.

ONGC’s earnings before interest, tax, depreciation, and amortization (EBITDA) for Q1 rose to Rs18,617.5 crore.

The company has announced a total of five discoveries in FY25 so far, including two prospects and one new pool (on land) discovery. One notable discovery was the exploratory well PURN-1, drilled in its CB-ONHP-2019/1 block in Gujarat’s Cambay basin.

4o