State-owned Oil and Natural Gas Corporation (ONGC) reported a decline of 7.9% in its consolidated net profit to Rs 10,748.5 crore in Q3FY24 compared with Rs 11,665 crore in the corresponding quarter last fiscal, as revenue fell. The profit fell by a sharper 35% on a sequential basis from Rs 16,553.32 crore in Q2FY24.
The decline was also due to lower price realisation in the last quarter. Realisations fell 6.4% to $81.59 per barrel. Gas prices, too, were lower by 24.2% at $6.5 per mmBtu.
Revenue from operations stood at Rs 165,569.06 crore, down from Rs 169,212.6 crore in the third quarter of FY23.
The company’s board of directors has approved a second interim dividend of 80%, ie, Rs 4 per equity share. This is in addition to the interim dividend of 5.75 per share (115 %) declared on November 10, 2023, ONGC said in an exchange filing.
The company’s total crude production fell 3% to 5.2 million tonne in Q3FY24 from the same period a year ago. During the first nine months of the fiscal, crude production declined by 2.9%. The decline in output was due to a shutdown in the Panna-Mukta offshore platforms for commissioning of a new crude oil pipeline, the company said. Moreover, cyclone Biparjoy and natural decline from mature fields resulted in lower output. “To counter the decline in production from some of the matured and marginal fields, ONGC is taking proactive steps by implementing well interventions and advancing new well drilling activities,” the company said.
ONGC also said it has received approval to form a 100% subsidiary company for green energy and gas business. The wholly owned subsidiary will work on green hydrogen, hydrogen blending, renewable energy (solar, wind and hybrid), biofuels business, and LNG.
The company had earlier said it plan to start drilling operations in its Andaman wells by May. The identified blocks are expected to contain large reserves of hydrocarbons.
Additionally, the company is looking for potential collaborations across the globe for the development of its rigs and exploration of ultra-deep water basins. ONGC is engaging with numerous technology partners, including Schlumberger and Halliburton, to explore a tie-up primarily focusing on offshore rig development, owing to escalating costs.