ONGC Q2 profit jumps 565% on oil price gains

New Delhi: Oil and Natural Gas Corp's (ONGC) quarterly profit jumped 565% to ₹18,348 crore from a year earlier on sharp gains in oil prices that helped more than offset the decline in production volume as well as gas prices.

Revenue for July-September rose 44% to ₹24,353 crore on higher oil prices. Realised oil price from nomination fields rose 68% from a year earlier to $69.36 per barrel. Realisation from joint venture fields increased 70% to $71.11.

Gas price realised by ONGC dropped a quarter to $1.79 per mmBtu during July-September.


Crude oil production fell 3.8% and natural gas output shrank 7%. "Production of crude oil and gas declined during the current year mainly due to restrictive conditions created by cyclone Tauktae and Covid impact," noted a statement.

During the quarter, the company decided to opt for a lower tax regime u/s 115BAA of the Income Tax Act, 1961, with effect from the financial year 2020-21, ONGC said. This has led to a net decrease in deferred tax by ₹8,541 crore and a reduction in current tax by ₹1,304 crore, as per the company.

ONGC has also declared an interim dividend of ₹5.50 per share.

Ahead of earnings, ONGC shares closed 0.75% up on Friday when the benchmark Sensex ended 1.28% higher.