Oil and Natural Gas Corporation (ONGC), the state-owned oil and gas exploration major, reported a significant increase of around 78 percent in its consolidated net profit for the fourth quarter of the financial year 2023-24. The company’s net profit stood at Rs 11,526.53 crore, compared to Rs 6,478.23 crore in the same period last year. Sequentially, ONGC’s consolidated net profit saw a marginal increase from Rs 11,104.50 crore posted in the previous quarter.

The company’s revenue from operations for the fourth quarter of the current fiscal year witnessed a marginal increase, amounting to Rs 1.66 lakh crore, compared to Rs 1.64 lakh crore recorded in the same period of the previous year.

ONGC’s board of directors recommended a final dividend of Rs 2.50 per equity share of face value of Rs 5 each for the financial year 2023-24, subject to the approval of shareholders.

The company’s earnings before interest, tax, depreciation, and amortization (EBITDA) for the fourth quarter rose to Rs 25,772 crore from Rs 15,752 crore during the corresponding period last year.

According to the average of eight analysts’ estimates surveyed by the sources, the upstream oil company’s net profit was expected to decline by over 11 percent year-on-year to Rs 8,434 crore. The company’s fourth-quarter revenue was anticipated to decline marginally by 1.11 percent to Rs 34,404 crore. Meanwhile, EBITDA was projected to fall by 0.5 percent year-on-year to Rs 17,251 crore due to lower administered price mechanism (APM) gas prices, lower oil and gas production, but partially offset by higher crude oil realization.

Crude oil price realization from ONGC’s nominated fields was $80.81 per barrel for the fourth quarter, compared to $77.12 per barrel for the same period last year.

In the fourth quarter, the company’s total crude oil production increased by 2.4 percent from last year to 5.359 million metric tonnes (MMT). However, ONGC’s total oil production in FY24 declined by 1.6 percent.

ONGC’s total gas production in the fourth quarter declined by 3 percent to 5.101 BCM from the previous year, as per the company’s press release.

During FY24, ONGC declared 11 discoveries (6 onland and 5 offshore) in its operated acreages, including 6 prospects (1 onland and 5 offshore) and 5 new pool (onland) discoveries.

The company drilled a record 541 wells in FY24, the highest in the past 34 years, comprising 103 exploratory and 438 development wells.

ONGC invested around Rs 37,000 crore in capital expenditure in FY24, compared to Rs 30,208 crore spent in the previous year.

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