ONGC Sees 17% Profit Rise Amid Reduced Taxes and Oil Production Increase

State-owned ONGC reported a 17% rise in its net profit during the second quarter of the 2024-25 fiscal year, primarily due to reduced windfall taxes and efforts to boost domestic oil production. The firm forecasts continued production growth from its Krishna Godavari basin, despite decreased crude oil prices.

State-owned Oil and Natural Gas Corporation (ONGC) announced a notable 17% increase in net profit for the second quarter of the fiscal year, driven by lower windfall taxes. The company's standalone net profit reached Rs 11,948.02 crore, up from Rs 10,238.10 crore in the same timeframe last year.

Despite receiving lower prices for crude oil sold to refiners, ONGC managed to boost profits by decreasing statutory levy payments, from Rs 10,791.09 crore in Q2 2023 to Rs 7,829.51 crore in Q2 2024. A key factor was the reduction of windfall profit tax, as international oil prices stabilized.

Alongside financial successes, ONGC reported a reversal in its declining crude oil production trend, with production increasing due to activities in the Krishna Godavari basin. The company foresees further production enhancements, which may subsequently influence financial performance in upcoming quarters.

(With inputs from agencies.)