ONGC's Profit Slump Amid Lower Crude Prices: A Production Perspective

State-owned ONGC reported a 16.7% drop in Q3 net profit due to lower crude oil prices, realizing USD 72.57 per barrel versus USD 81.13 the previous year. Despite this, ONGC maintained production growth in crude oil and natural gas. Seven new oil and gas discoveries were made.

State-owned Oil and Natural Gas Corporation (ONGC) has reported a significant drop of 16.7% in its third-quarter net profit, attributed to diminished crude oil prices. The firm's standalone net profit was Rs 8,240 crore for the October-December 2024 period, compared to Rs 9,892 crore during the same time in the previous year.

For the crude oil it produces, ONGC realized USD 72.57 per barrel, which is a noticeable decrease from the previous year's USD 81.13 per barrel. Despite the financial downturn, ONGC has managed to maintain an upward trend in crude oil production, noting a 2.2% growth in Q3 FY25 over the same period last fiscal year.

Major strides in natural gas production were also recorded, with a slight increase to 4.978 billion cubic meters. Additionally, ONGC announced exciting developments in their explorations, with seven discoveries in the current fiscal year. The company approved a second interim dividend payout, highlighting its dedication to shareholder value.

(With inputs from agencies.)