What TV doesn't, print can't; we deliver.
What TV doesn't, print can't; we deliver.
The Oil and Natural Gas Corporation Limited (ONGC), a state-run petroleum giant, announced a remarkable 142.4 per cent increase in consolidated net profit, reaching Rs 16,553 crore in the second quarter of the financial year 2023-24. This significant surge compares to a profit of Rs 6,830 crore in the corresponding period last year.
However, the buoyant profit comes against a backdrop of a 12.9 per cent decline in revenue from operations, dropping to Rs 1.46 lakh crore in the quarter ending September 30, down from Rs 1.68 lakh crore the previous year, as reported in an exchange filing by ONGC.
The company’s board has given the nod for an interim dividend of Rs 5.75 per share, with the distribution record date set for November 21.
Despite the impressive financials, ONGC faced a 2.1 per cent decrease in total crude production during the second quarter, amounting to 5.249 million metric tonnes (MMT), compared to 5.360 MMT in Q2FY23. Similarly, natural gas production saw a 2.8 per cent decline to 5.2 billion cubic metres (BCM), down from 5.35 BCM the previous year.
ONGC attributed the reduction in production to declines in matured and marginal fields. To counter this trend, the company outlined proactive measures, including good interventions and the advancement of new well-drilling activities within these fields.
In India, ONGC’s offshore Exploration and Production (E&P) segment reported an Earnings Before Interest and Taxes (EBIT) of Rs 10,380.15 crore, while the onshore EBIT stood at Rs 2,215.58 crore. The Refining and Marketing segment saw a significant improvement in EBIT, reaching Rs 8,880.37 crore in Q2, compared to a loss of Rs 4,748.44 crore in the same period last year.
The company’s shares settled at Rs 195.75 per piece on the BSE, marking a 1.61 per cent increase from the previous day’s closing.
