The net profit of the government company ONGC fell 19.4% to ₹ 8,621.69 crore in the third quarter (October-December) of FY 2024-25. It was ₹ 10,703.13 crore in the same quarter last year. The main reason for this decline was the decrease in crude oil prices. On the quarter -rate quarter, the profit also declined by 16.07%, which was ₹ 10,272 crore in the previous quarter (Q2 FY25).
However, the Gross Revenue of the company fell 0.7% to ₹ 1.66 lakh crore (₹ 1.66 trillion), which was ₹ 1.67 lakh crore in Q3 FY24 last year.
Benefits affected by the fall in crude oil prices
The ONGC sells oil according to the international standard, which the refineries turn into petrol, diesel and other petroleum products. Crude oil prices remained between $ 73.5 to $ 75 per barrel in this quarter, just in early October to $ 80.9.
India’s largest oil producing company
ONGC is the largest oil producing company in India, producing 1.26 million barrels of oil daily and contributes about 71% of the country’s total domestic production. Its fulfilled subsidiary ONGC Foreign Limited (ONGC VIDESH LTD – OVL) is India’s largest multinational company, which has 35 oil and gas projects in 15 countries.
Improvement in crude oil and gas production
ONGC has increased the production of crude oil in the second consecutive quarter. The company’s standalone crude oil production (except condensate) during the Q3 FY25 was 4.65 million metric tons (MMT), which is 2.2% higher than the same quarter of the previous year.
Similarly, the total production of standalone crude oil in the first nine months of FY 2024-25 was 13.85 mmt, which is 1.2% more than the same period last year.
The ONGC has also reversed the trend of decline in the production of natural gas and now it is seeing an increase. In Q3 FY25, standalone natural gas production was 4.978 billion cubic meters (BCM), which is 0.3% higher than the Q3 FY24.
Declaration of dividend and acquisition
The Board of Directors of ONGC has declared the second interim dividend of ₹ 5 per equity share for FY 2024-25. The marked value of each share is ₹ 5, ie 100% dividend has been declared for this year. A record date for distribution of dividend has been fixed on 7 February 2025.
In addition, the Board of ONGC has approved the purchase of 11.5 crore (115 million) equity shares of Mangalore SEZ Limited from Infrastructure Leasing and Financial Services Limited for ₹ 56.11 crore. This acquisition will be done under the company’s first procurement rights (Right of First Refusal).