NEW DELHI: State-run Oil and Natural Gas Corporation (ONGC) reported a 35 per cent decline in net profit for the March quarter, hurt by softer oil and gas prices and nearly flat production.
Net profit for the January–March period of FY25 stood at Rs6,448 crore, down from Rs9,869 crore in the same period a year earlier, the company said in a statement on Wednesday.
The decline came despite a marginal uptick in revenue, which rose 1 per cent year-on-year to Rs34,982 crore. ONGC realised $73.72 per barrel of crude oil in the fourth quarter, lower than the $80.81 it fetched a year ago.
ONGC crude oil production was nearly flat at 4.7 million tonnes, slightly below the 4.714 million tonnes produced in the corresponding period last year. Natural gas output also slipped to 4.893 billion cubic metres (BCM) from 4.951 BCM.
For the full fiscal year FY25, ONGC posted a 12 per cent drop in net profit to Rs35,610 crore, while revenue remained almost unchanged at Rs1.37 lakh crore. Average oil price realisation for the year fell 4.8 per cent to $76.90 per barrel. Gas prices, however, held steady at $6.5 per million British thermal unit for both the quarter and the full year.
Standalone crude output in FY25 rose 0.9 per cent to 18.558 million tonnes, while gas production dipped slightly to 19.654 BCM from 19.978 BCM a year ago.
ONGC said it drilled 578 wells in FY25 — the highest in 35 years — including 109 exploratory and 469 development wells. This compares to 544 wells drilled in FY24. The company is stepping up drilling activity as the government now offers a 10 per cent premium on gas from new wells.
Rs62,000cr capex
ONGC invested Rs62,000 crore in capital expenditure in FY25, significantly higher than Rs37,494 crore in FY24. This included Rs18,365 crore for investments in ONGC Petro additions Ltd (OPaL) and Rs4,600 crore in ONGC Green Ltd for acquiring PTC Energy and Ayana Renewables.
Its overseas arm, ONGC Videsh Ltd (OVL), reported a modest 1.2 per cent increase in oil production to 7.265 million tonnes. This was attributed to strong performance from assets in Colombia and South Sudan, despite geopolitical challenges and natural decline.
Gas production from overseas assets fell to 3.013 BCM from 3.340 BCM, largely due to the expiry of the production life of Vietnam’s Block 06.1. OVL’s turnover slipped to Rs12,995 crore in FY25 from Rs13,197 crore in the previous year. Net profit also declined to Rs418 crore from Rs490 crore (restated) last year, as the average crude realisation dropped to $70.23 per barrel from $71.47.
During FY25, ONGC made nine hydrocarbon discoveries — five onshore and four offshore. Of these, eight have already been monetised, including two made during the fiscal year itself.
ONGC crude oil production was nearly flat at 4.7 million tonnes, slightly below the 4.714 million tonnes produced in the corresponding period last year
ONGC invested Rs62,000cr in capital expenditure in FY25, far higher than Rs37,494cr in FY24
