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Informist, Thursday, May 22, 2025

 

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--ONGC Jan-Mar net profit INR 64.48 bln
--Analysts saw ONGC Jan-Mar net profit INR 85.53 bln  
--ONGC Jan-Mar net profit INR 64.48 bln vs INR 98.69 bln year ago 
--ONGC Jan-Mar revenue INR 349.82 bln vs INR 346.37 bln year ago 
--ONGC to pay INR 1.25 per share final dividend 
--ONGC FY25 net profit INR 356.10 bln vs INR 405.26 bln year ago 
--ONGC FY25 revenue INR 1.378 tln vs INR 1.384 tln year ago 
--ONGC Jan-Mar operating margin 28.46% vs 40.12% year ago 
--ONGC Jan-Mar other income INR 20.75 bln vs INR 36.65 bln year 
--ONGC Jan-Mar offshore revenue INR 247.83 bln vs INR 238.91 bln year ago 
--ONGC Jan-Mar onshore revenue INR 102 bln vs INR 107.46 bln year ago 
--ONGC Jan-Mar crude oil output 4.70 mln tn vs 4.71 mln tn year ago 
--ONGC FY25 crude oil output 18.56 mln tn vs 18.40 mln tn year ago 
--ONGC Jan-Mar natural gas output 4.89 bln cu mtr vs 4.95 bln cu mtr yr ago 
--ONGC FY25 natural gas output 19.65 bln cu mtr vs 19.98 bln cu mtr yr ago
--ONGC board OKs extending INR 200 bln corporate guarantee for arm ONGC Petro 
 

 

By Arya S. Biju

 

MUMBAI – Lower realisations and flat crude oil output on a year-on-year basis dealt a hit to Oil and Natural Gas Corp. Ltd.'s earnings for the March quarter. The state-owned oil major reported its lowest net profit since the June quarter of 2023, as a double-digit rise in total expenses offset the marginal on-year rise in the top line.  

 

The Maharatna company reported a sharp 35% on-year decline in its net profit for the March quarter at INR 64.48 billion, missing the Street's estimate of INR 85.83 billion by a wide margin. Its revenue rose marginally to INR 349.82 billion from INR 346.37 billion a year ago. This marks the slowest on-year growth in its top line since the December quarter of 2015, according to data available with Informist. But the upstream company's revenue from operations was higher than analysts' estimate of INR 336.96 billion. The company's other income for the quarter fell over 43% on year to INR 20.75 billion. 

 

For the financial year ended March, the company reported a net profit of INR 356.10 billion, down over 12% on year. Its revenue for the period was INR 1.378 trillion, down marginally from INR 1.384 trillion reported the previous year. 

 

The company's standalone crude oil output for the March quarter fell marginally to 4.70 million tonnes from 4.71 million tonnes in the year-ago quarter. This was after two consecutive quarters of a rise. In 2024-25 (Apr-Mar), the company produced 18.56 million tonnes of crude oil, lower than 18.40 million tonnes produced in FY24.

 

In the March quarter, crude oil price realisation from nominated fields fell 8.8% on year to $73.72 per barrel. In rupee terms, the realisation fell 4.8% to INR 6,385 per barrel. For FY25, crude oil price realisation fell 4.8% on year to $76.90 per barrel and in rupee terms, the on-year fall was 2.8% at INR 6,503 per barrel. ONGC derives a bulk of its standalone revenue from the sale of crude oil. 

 

ONGC's crude oil production from its joint ventures declined nearly 20% on year to 300,000 tonnes. Price realisations from its joint ventures fell 3.4% on year to $74.19 per barrel. However, in rupee terms, the price realisation rose nearly 1% on year to INR 6,427 per barrel.  

 

During the March quarter, the company's own natural gas production fell to 4.89 billion cubic metres from 4.95 billion cubic metres produced in the year-ago quarter. Gas prices during the March quarter, which are based on a pre-fixed administered price mechanism, were unchanged at $6.5 per million British thermal unit. For FY25, the company's standalone natural gas production fell 1.6% on year to 19.65 billion cubic metres. Natural gas production from its joint ventures fell to 120 million cubic metres from 151 million cubic metres in the year-ago quarter.

 

Revenue from offshore operations for the quarter rose nearly 4% on year to 247.83 billion. Revenue from this segment accounted for nearly 71% of the company's total revenue. Revenue from onshore operations for the quarter fell over 5% on year to INR 101 billion. ONGC's operating margin for the quarter under review was 28.46%, down from 40.12% in the year-ago quarter. For FY25, its operating margin was 37.26%, down from 41.25% in FY24.   

 

The state-owned company incurred total expenditure of INR 282.89 billion in the March quarter, up over 11% on year. The cost of materials consumed, which represents the company's consumption of raw materials and spares, was INR 11.19 billion, up over 18% on year. Other expense, which account for over 26% of the company's total expenses, rose marginally to INR 74.85 billion from INR 74.46 billion in the year-ago quarter. Expenses related to statutory levies for the latest quarter fell over 25% on year to INR 67.35 billion. Exploration costs written off more than tripled on year to INR 50.47 billion. 
 

ONGC invested around INR 620 billion as capital expenditure in FY25, higher than INR 374.94 billion in FY24. This included investment of INR 183.65 billion in ONGC Petro Additions Ltd., and INR 46 billion in ONGC Green Ltd. for the acquisition of PTC Energy and Ayana Renewables.

 

Along with the quarterly results, the company announced final dividend of INR 1.25 per share for FY25. The company's board also approved extending a corporate guarantee of INR 200 billion to its subsidiary ONGC Petro Additions to refinance the latter's debt.

 

ONGC announced its March quarter earnings late Wednesday. At 1024 IST Thursday, the company's shares were at INR 245.09 on the National Stock Exchange, down 1.4% from the previous close.  End

 

US$1 = INR 85.67

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Avishek Dutta

 

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