ONGC Ltd on February 14 reported a standalone profit of Rs 11,045 crore for the third quarter ended December 2022 (Q3FY23), registering a growth of 26 percent over the Rs 8,764 crore profit it registered in the year-ago period.
Compared to the September quarter, the profit was down 14 percent from Rs 12,826 crore.
Standalone revenue for the state-run oil and gas major surged 36 percent to Rs 38,583 crore from Rs 28,473 crore in the year-ago period. On a sequential basis, the revenue was flat with a marginal gain of one percent from Rs 38,321 crore.
“Uncertainties and constraints across the global supply chain due to the Russia-Ukraine conflict have adversely affected the production of crude oil and gas”, the company said in its earnings release.
Significant peaks in energy prices and political stands of different nations in the aforementioned matter have impacted energy productivity, affordability, and cost inflation, besides the lingering aftermath of the restrictive conditions due to the COVID pandemic, the company added.
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The growth in revenue and earnings was driven largely by a surge in APM gas prices compared to last year, but it was negated partially by a muted growth in volumes for both oil and gas businesses.
The crude oil (nominated) realisation for the quarter stood at $87.13 per barrel which is higher by 15.1 percent compared to the realisation of $75.73 per barrel during the corresponding period last year.
In rupee terms, the average crude realisation was Rs 7,162 per barrel, 26.2 percent higher year-on-year (YoY).
However, total crude production during the quarter remained flat at 5.4 million metric tonnes (mmt) compared to 5.45 mmt produced during the same period a year ago.
The price of gas on a gross calorific value basis jumped 196 percent to $8.57 per million metric British Thermal Unit (mmbtu) from $2.9 mmbtu during the same period a year ago.
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The gas production during the quarter was down 4 percent on-year to 5.35 billion cubic metres (BCM) compared to 5.57 BCM a year ago.
The production of value-added products dipped 16 percent on-year to 642 kilotonnes (KT) from 763 KT.
The operating costs for the quarter witnessed a jump both on a YoY as well as a sequential basis with an increase in other expenses, cost of raw material and exploration costs which impacted the operating margins.
The operating margins for the quarter at 39.8 percent were down 235 basis points on-year and 462 basis points on a QoQ basis.
ONGC has declared a total of seven discoveries (four on land and three offshore) during FY2022-23 so far in its operated acreages. Out of these, two (one on land and one offshore) are prospects and five (three on land and two offshore) are pools.
Out of seven discoveries notified to date during FY 2022-23, two discoveries viz. Mandapeta-60 and Kesanapalli West Deep-7 have been monetised by ONGC.
The company has declared a second interim dividend of Rs 4 per equity share of the face value of Rs 5 each which works out at a rate of 80 percent for the Financial Year 2022-23. The company has fixed February 24 as Record Date for determining the eligibility of shareholders for the payment of the said Interim Dividend.
The dividend will be paid to the eligible shareholders on or before March 16.
ONGC shares closed flat with a marginal gain of 30 paise over its previous close at Rs 148.45 on February 14 on the National Stock Exchange. The stock has shed 10.7 percent over the past one year; however, it has gained 1 percent over the past one month.
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