On February 14, ONGC Ltd announced a standalone profit of Rs 11,045 crore for the third quarter ending December 2022 (Q3FY23), up 26% from the previous year’s profit of Rs 8,764 crore.
Profit fell 14% from Rs 12,826 crore in the previous quarter.
The state-run oil and gas major’s standalone income increased 36% year on year to Rs 38,583 crore from Rs 28,473 crore. On a sequential basis, revenue remained steady, with a 1% increase 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.
Considerable increases in energy costs, as well as the political positions of various countries on the aforementioned topic, have had a significant influence on energy productivity, affordability, and cost inflation, according to the firm.
The increase in revenue and profitability was driven mostly by an increase in APM gas prices over the previous year, but it was offset in part by a slow increase in volumes for both the oil and gas sectors.
The quarter’s crude oil (nominated) realisation was $ 87.13 per barrel, a 15.1% increase over the previous year’s comparable period realisation of $ 75.73 per barrel.
The average crude oil price in rupees was Rs 7,162 per barrel, representing a 26.2 percent increase year on year.
However, overall crude output remained constant during the quarter, at 5.4 million metric tonnes (mmt), compared to the 5.45 mmt produced during the same period last year.
Gas prices increased 196 percent year on year, to $ 8.57 per million metric British Thermal Units (mmbtu) from $ 2.9 mmbtu in the same period last year.
The quarter’s gas output was down 4% year on year to 5.35 billion cubic metres (BCM), compared to 5.57 BCM the previous year.
Year on year, value-added product production fell 16% to 642 kilo tonnes (KT) from 763 KT.
The operational costs for the quarter increased both year over year and sequentially due to increases in other expenditures, raw material costs, and exploration costs, which reduced the operating margins.
Operating margins for the quarter were 39.8 percent, down 235 basis points year over year and 462 basis points quarter over quarter.
So far in FY 2022–23, ONGC has reported 7 discoveries (4 onshore and 3 offshore) on its operated acreages. There are two prospects (one on land and one offshore) and five pools (three on land and two offshore).
Two finds, Mandapeta-60 and Kesanapalli West Deep-7, have been monetized by ONGC so far during the fiscal year 2022–23.
For the fiscal year 2022–23, the business issued a second interim dividend of Rs 4 per equity share with a face value of Rs 5 apiece, representing an 80 percent yield. The corporation has set February 24 as the record date for establishing shareholder eligibility for the payment of the interim dividend. The dividend will be paid on or before March 16 to qualifying stockholders.
On the National Stock Exchange, ONGC shares finished flat with a tiny increase of 30 paise over their previous closing of Rs 148.45 on February 14. The stock has dropped 10.7 percent in the last year but is up 1 percent in the last month.
