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ONGC: ONGC Q3 net falls 14% as oil prices dip

Oil and Natural Gas Corp’s profit fell 14% year-on-year to ₹9,536 crore in the October-December quarter as both production and prices of oil and gas declined.

Gross revenue fell 10% to ₹34,789 crore.

ONGC’s crude oil production fell 3% to 5.2 million metric tonnes during the quarter. Its gas output fell 4% to 5.1 billion cubic meters.

Natural decline from mature fields has been a key contributor to ONGC’s production drop for years. Shutdown in Panna-Mukta offshore platforms for the commissioning of a new crude oil pipeline and a pipeline leak that stopped intake by a refinery were cited as reasons by ONGC for its output decline in 2023-24.

“The decline in production from matured fields will be compensated in upcoming quarters with the commencement of additional production from upcoming projects, which are under various stages of development,” the company said in a statement.

The company realised an average oil price of $81.6 per barrel in the October-December quarter from its legacy fields, down 6% from a year earlier. In rupee terms, the decline was 5%. The average oil price realised from fields operated by the private sector fell 10% to $76.4 per barrel.The natural gas price fell nearly a quarter to $6.5 per mmbtu in the October-December period from $8.57 in the year-earlier quarter following introduction of a price ceiling by the government.Geopolitical tensions and OPEC+ supply curbs kept global oil prices high during the last quarter of 2023. Natural gas has, however, become cheaper. Key spot benchmarks for LNG have halved in a year.

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