ONGC’s net profit more than doubles with spike in net crude price realisations
ONGC reported a 112% increase in net profit for the June-end quarter, reaching ₹17,034 crore, driven by a 50% rise in crude oil price realizations. Despite flat production volumes, the company expects to reverse production declines through new strategic projects.
Why it matters
As a state-owned energy giant, ONGC's financial performance is a key indicator of India's energy sector health and government revenue.
State-owned explorer Oil and Natural Gas Corporation’s (ONGC) net profit more than doubled in the June-end quarter fuelled by a more-than-half times increase in net crude price realisations.
The Delhi-headquartered explorer’s net profit rose more than 112% on a year-over-year basis to ₹17,034 crore.
This was led by net crude oil price realisations, that is, the average price an explorer receives for each barrel of oil it sells, increasing 50.4% to $99.45 per barrel.
Gross revenues increased 45.2% on a year-over-year basis to ₹46,460 crore.
ONGC’s standalone production of crude oil and natural gas stayed nearly flat in the reported quarter from the comparable period last year at 4.452 million metric tonnes (MMT) and 4.756 billion cubic metres (BCM).
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