ONGC's first quarter results show a 34% YoY decline in profit to Rs 10,015 crore

14 Aug 2023 , 11:15 AM

Due to the steep decline in oil prices, Oil and Natural Gas Corp’s (ONGC) quarterly profit decreased 34% to Rs 10,015 crore from a year earlier.

To Rs 33,814 crore, revenue for the April-June quarter decreased 20% year over year. During the quarter, the average oil price realized from nominated fields decreased by 29.5% from the same period last year to $ 76.49 per barrel. At Rs 6,288 per barrel in rupees, the realization was 25% less. From joint venture fields, oil price realization decreased 31% to Rs 5,808 per barrel.

Due to the severe uncertainties caused by the Russia-Ukraine war and the Western sanctions, oil prices reached exceptionally high levels in the April to June quarter of 2022. Now, oil prices are back to normal.

However, during the April to June quarter, the price of natural gas increased by 10% year over year to $6.71 per mmBtu.

A decrease in production also had an impact on profit. The output of natural gas and oil both decreased by 3% from a year ago, while the output of goods with value-added shrank by 10%. According to the corporation, hurricane Biparjoy and a scheduled stoppage of the Panna-Mukta offshore platforms for the completion of a new crude oil pipeline both had an impact on production.

ONGC shares increased 0.68% on Monday to trade at Rs 178.40 per share at 10:15 am

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