ONGC Q2 profit down 18% on low oil price, to pay Rs 6/share dividend

New Delhi: Oil and Natural Gas Corp. (ONGC) has reported an 18% year-on-year decline in quarterly profit to ₹9,848 crore due to lower oil prices.

Revenues from operations fell 2.5% to ₹33,031 crore in the July–September quarter. The company declared an interim dividend of ₹6 per equity share for the current fiscal year, with a total payout of ₹7,548 crore.

ONGC realised a crude oil price of $67.34 per barrel from its nominated fields during the quarter, down 14% from a year earlier, while realisation from joint venture fields fell 12.3%. Natural gas price realisation from nominated fields was 3.8% higher at $6.75 per mmbtu. However, average prices from new well gas, which is linked to crude oil rates, dropped 11.3% to $8.36 per mmbtu.


Standalone crude oil production during the quarter grew 1.2%, and the company arrested the decline in its gas production in the second quarter.

The ONGC board on Monday approved an equity infusion of up to ₹421.50 crore in Ayana Renewable Power Pvt Ltd, which it half-owns through its wholly owned subsidiary ONGC Green Limited (OGL). NTPC owns the remaining stake in Ayana, which has 4.1 GW of operational and under-construction assets.

The board also approved entering into two identical joint ventures with Mitsui O.S.K. Lines Ltd (MOL), with 50:50 shareholding, marking a strategic expansion into the ethane transportation segment through Very Large Ethane Carriers (VLECs).