ONGC Q3 Profit Falls 17% YoY, Declares ₹5 Interim Dividend

31 Jan 2025 , 10:35 PM

Oil and Natural Gas Corporation (ONGC) said it had incurred a net profit of ₹8,240 crore in Q3 FY25 as against ₹9,892 crore in the corresponding quarter the previous year when earnings were up 16.7% from the year before.

Lower crude oil realizations impacted earnings, with company getting $72.57 per barrel as against $81.13 per barrel in Q3 FY24. Gross revenue declined 3.1% at ₹33,771 crore, it said mainly due to depressed oil prices. Natural gas prices remained steady at $6.50 per mmBtu. The revenues generated from the sale of gas thus were affected.

Crude oil production has risen consecutively for two quarters:

• Q3 FY25 crude oil production at 4.653 million tonnes, with an increase of 2.2% YoY.
• Production in the first nine months of FY25 at 13.858 million tonnes, with an increase of 1.2% YoY.
• December 2024 crude oil production rose 5.4% YoY, and remained on the growth path.

Gas production also rebounded:

• Q3 FY25 gas output was at 4.978 billion cubic meters, up 0.3% YoY.
• December 2024 gas production rose 0.9% YoY, reversing declining trends.

ONGC’s KG-DWN-98/2 block in the KG basin is producing 35,000 barrels per day of oil, with 13 wells now operational after commissioning of five new deepwater wells.

The board approved the second interim dividend of ₹5 per share amounting to 100% of face value, amounting to ₹6,290 crore. The first interim dividend of ₹6 per share was declared in November 2024. FY25 has already seen seven oil and gas discoveries, including four onland and three offshore discoveries:

• Five new exploration prospects-three onland and two offshore
• Two new pool discoveries-one onland and one offshore.

Despite weak oil prices impacting profitability, ONGC continues to show growth in production while expanding deepwater operations and rewarding shareholders with very strong dividend payouts.