ONGC Q2 profit jumps 57% to Rs 15,489 crore on higher oil prices, rupee depreciation

New Delhi: Oil and Natural Gas Corp (ONGC) reported a 57% year-on-year surge in quarterly profit to Rs 15,489 crore, aided by higher oil and gas prices and rupee depreciation.

Gross revenue rose 33% to Rs 43,875 crore in the July-September quarter. The company declared an interim dividend of Rs 8 per share, with November 12 as the record date. At Rs 10,064 crore, this is the highest-ever interim dividend, the company said in a statement.

During the quarter, ONGC realised $92.23 per barrel from its nomination fields, up 37% from a year earlier. In rupee terms, realisation rose 50% to Rs 8,826 per barrel.


Crude oil realisation from joint venture projects increased 42% to $97 per barrel. In rupee terms, it rose 55.5% to Rs 9,275 per barrel.

Gas realisation rose 3.7% to $7 per mmbtu for output from nomination fields and 22.5% to $10.24 per mmbtu for new well gas.

The government caps the price of gas from nomination fields, while the price of new well gas is unrestricted and linked to 12% of the India basket crude price. New well gas refers to output from new wells drilled in existing fields or from projects involving fresh investments in enhanced recovery techniques.

New well gas has become a significant contributor to ONGC’s overall revenue over the years.

The company’s oil and gas production fell 3% year-on-year during the quarter.

“The year-on-year moderation in quarterly production was primarily attributable to reservoir behaviour complexities in KG-98/2 asset in eastern offshore basin, coupled with monsoon-related operational challenges and associated delays in pipeline replacement projects,” the company said.

“Gas production from onshore fields was also affected by lower customer offtake during the quarter, following disruptions at certain major consumer facilities that temporarily reduced demand,” it added.

The board also approved a proposal to provide a five-year loan of Rs 10,000 crore to its wholly owned overseas arm, ONGC Videsh.

ONGC has also set up a joint venture company for marketing and trading petrochemicals. ONGC, MRPL and OPaL hold stakes of 50%, 25% and 25%, respectively.

Ahead of the earnings announcement, ONGC shares, valued at Rs 2.9 lakh crore, closed 1.9% lower at Rs 230.10 apiece on Thursday.