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Business News/ Companies / Company Results/  ONGC Q3 Results: Net profit drops 10% to 10,356 crore, revenue down 2% YoY; dividend declared
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ONGC Q3 Results: Net profit drops 10% to ₹10,356 crore, revenue down 2% YoY; dividend declared

ONGC Q3 Results: The state-run petroleum giant's revenue from operations during the third quarter of current fiscal stood at ₹1,65,569 crore, registering a decline of 2.2 per cent, compared to ₹1,69,213 crore in the year-ago period.

ONGC shares closed two per cent lower on Friday. (Picture Credits: ONGC official website)Premium
ONGC shares closed two per cent lower on Friday. (Picture Credits: ONGC official website)

ONGC Q3 Results: Oil and Natural Gas Corporation (ONGC) released its October-December quarter results for fiscal 2023-24 (Q3FY24), reporting a decline of around 10 per cent to 10,356 crore, compared to 11,489 crore in the year-ago period.

The state-run petroleum giant's revenue from operations during the third quarter of current fiscal stood at 1,65,569 crore, registering a decline of 2.2 per cent, compared to 1,69,213 crore in the year-ago period.

ONGC's board has approved a second interim dividend of 80 per cent, i.e. 4 per equity share of face value of 5 each for the fiscal 2023-24. The total payout on this account will be 5,032 crore. The record date for determining the eligibility of shareholders for the payment of the dividend has been fixed as February 17, 2024. 

The dividend will be paid to the eligible shareholders on or before March 10, 2024. This interim dividend is in addition to the first interim dividend of 5.75 per share (115 per cent) declared earlier in November 2023.

During the third quarter, ONGC’s total crude production dropped 3.3 per cent to 5.219 million metric tonnes (MMT) from 5.396 MMT in Q3FY23. Meanwhile, ONGC’s natural gas production declined by 4.3 per cent to 5.12 billion cubic meters (BCM) in the third quarter, as against 5.35 BCM in the year-ago period.

ONGC said that the reduction in production output can primarily be attributed to the shutdown in Panna-Mukta offshore platforms for commissioning of new crude oil pipeline to modernise its evacuation facilities after taking over from joint venture (JV) partners.

Cyclone Biparjoy (June 2023) also disrupted offshore and onshore production. The crude oil production of a Southern Asset was hampered as a refinery stopped receiving oil, following a leakage in their pipeline and natural decline from mature fields also caused the reduction in output, explained the oil explorer.

‘’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,'' said ONGC in its exchange filing.

The 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, while crude oil production has commenced from KG 98/2, according to ONGC.

ONGC has declared total of nine discoveries (four in onland and five in offshore) during FY 2023-24 in its operated acreages. Out of these, five are prospect (offshore) and four are onland are new pools. ONGC has monetized six discoveries till date during FY 2023-24.

ONGC, which accounts for about two-thirds of India’s oil and more than 50 per cent of its gas output, announced the commencement of “first oil" from the deep water KG-DWN-98/2 Block, situated off the coast of Bay of Bengal on January 7, 2024.

The company's board of directors approved the appointment of K. C. Ramesh as chief financial officer (CFO) of the company with immediate effect. On Friday, shares of ONGC settled 2.32 per cent lower at 266.95 apiece on the BSE.

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Nikita Prasad
Nikita covers business news and has been producing news on digital platforms since 2018. She writes on economy, policy, markets, commodities, industry. Her core areas of interests include infrastructure, energy, oil and gas, railways, and transport/mobility. She has worked for business news channels like Moneycontrol, NDTV Profit, and Financial Express in the past. If you have story ideas/pitches/reports or quotes/views to share, reach her at nikita.prasad@htdigital.in.
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Published: 10 Feb 2024, 11:34 PM IST
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