During the same quarter of the last fiscal (FY23), the company had reported a net profit of ₹8,581 crore.
State-run ONGC on Friday reported a 102.6% rise in its consolidated net profit for the April-June quarter at ₹17,383 crore.
Its gross revenue, however, declined 10.4% on a year-on-year basis to ₹1.63 trillion, the company said in a statement.
The growth in profit was aided by a decline in expenses.
ONGC Q1 2023 Financial Results Summary:
- Consolidated Net Profit Rise: State-run ONGC reported a remarkable 102.6% increase in consolidated net profit for Q1 2023, reaching ₹17,383 crore. In the same quarter of the previous fiscal year (FY23), the company had recorded a net profit of ₹8,581 crore.
- Gross Revenue Decline: However, the company’s gross revenue declined by 10.4% on a year-on-year basis to ₹1.63 trillion. This decline in revenue was attributed to factors such as a decline in expenses.
- Standalone Net Profit: On a standalone basis, ONGC’s net profit fell by 34.1% during the reviewed quarter, amounting to ₹10,015 crore.
- Crude Oil Production: The Company’s total crude oil production experienced a 3.3% YoY decline, reaching 5.311 million metric tonnes (MMT).
- Production Decline Causes: ONGC attributed the decline in production to various factors, including the shutdown of Panna-Mukta offshore platforms for commissioning a new crude oil pipeline and disruptions caused by Cyclone Biparjoy in June 2023. Crude oil wells in southern India had to be halted due to a pipeline leakage that impacted a receiving refinery.
- Production Recovery Strategy: ONGC indicated that it is taking proactive measures to counter the decline in production from matured and marginal fields. This includes implementing well interventions and advancing new well drilling activities. The company expects the current production decline to be temporary and plans to compensate for it in upcoming quarters, particularly with additional production from new projects. Crude oil production from KG 98/2 is expected to commence in Q3 2023-24.
- Discoveries: ONGC declared a total of four discoveries in the first quarter, including one on land and three offshore in its operated acreages. Among these, the Gopavaram-21 discovery has already been monetized by ONGC.
Overall, ONGC’s Q1 2023 results show a substantial increase in consolidated net profit, although there was a decline in gross revenue. The company is implementing strategies to counter production declines and is looking forward to compensating through upcoming projects in subsequent quarters.
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