Oil and Natural Gas Corporation (ONGC) on Friday posted second quarter profit for the financial year 2023-24 at Rs 16,553.32 crore, up 142.4 per cent in comparison to Rs 6830.16 crore during the second quarter of FY23, surpassing estimates. It posted revenue from operations at Rs 146,873.73 crore, down 12.9 per cent as against Rs 168,656.12 crore during the same period last year. According to a CNBC TV18 poll, ONGC was expected to record Q2 profit at Rs 11,034 crore and the revenue was estimated at Rs 36,767 crore.
The company board also declared an interim dividend at the rate Rs 5.75 per equity share of face value of Rs 5 each i.e. at 115 per cent for the financial year 2023-24. The total payout on this account will be Rs 7,234 crore.”The 21st November, 2023 has been fixed as the record date for determining eligibility of shareholders for payment of interim dividend. The dividend will be paid to the eligible shareholders on or before 10.12.2023,” the company said in a regulatory filing.
ONGC said that during the quarter ended September 2023, its total crude production dropped by 2.1 per cent to 5.249 million metric tonnes (MMT) from 5.360 MMT in Q2FY23. Further, ONGC’s natural gas production declined by 2.8 per cent to 5.2 billion cubic meters (BCM) in the second quarter of FY23 from 5.352 BCM during the same period last year.
ONGC said that the reduction in production output can primarily be attributed to decline in some of the matured fields and marginal fields. To counter this decline, ONGC is taking steps by implementing well interventions and advancing new well drilling activities within these fields.
Furthermore, it said that in a bid to bolster evacuation capacities and modernize offshore facilities, a shutdown was undertaken in Panna-Mukta for commissioning of a new crude oil pipeline, post taking over from JV Partner. “The shutdown resulted in a temporary loss of production. Another factor impacting production was Cyclone Biparjoy struck in June 2023. This event disrupted both offshore and onshore production operations. Further, oil production of a Southern Asset was hampered due to the stoppage of wells caused by the cessation of crude oil receipts by a refinery, following a leak in its pipeline,” the company said.
ONGC said that the company acted swiftly and devised an alternate method for the evacuation of crude oil through tankers, thus resuming production. “The current decline in production from matured fields will be compensated in upcoming quarters with commencement of additional production from upcoming projects, which are under various stages of development,” it said.