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ONGC Q1 net profit doubles to Rs 17,034 crore
ONGC is a big Indian company that finds and pumps oil and natural gas.
In the three months from April to June, it made more than twice as much profit as it did a year earlier.
The main reason is that the price of oil shot up, so every barrel the company sold brought in much more money.
The money the company earned from selling oil and gas also grew by around 45 percent.
But the whole ONGC group's profit actually went down because one of its other companies lost money on fuel sales.
Even though it earned more, ONGC pumped a little less oil and gas because some underwater fields are tricky to drill and there were storms and delays.
The company has started drilling a brand-new deep sea well in the ocean near India's Mahanadi region.
During the quarter it also found two new places that hold oil or gas.
ONGC says new projects coming online in the coming years should help it produce more energy and keep India's fuel supplies safe.
ONGC's standalone net profit more than doubled, rising 112.3% year-on-year to Rs 17,033.81 crore in the June quarter.
Revenue from operations climbed 45.2% to Rs 46,460.45 crore, helped by a 50.4% rise in net crude realisation to $99.45 per barrel.
Consolidated net profit fell 43.3% to Rs 6,554.44 crore, dragged down by HPCL's Rs 12,265 crore net loss from under-recoveries after the West Asia crisis pushed up crude prices.
Crude oil production fell 5.5% and natural gas output declined 2% (Article 1 cites standalone crude of 4.452 million tonnes and gas of 4.756 billion cubic metres) due to reservoir complexities, weather and project delays.
ONGC spudded its first deepwater exploratory well in the Mahanadi basin on July 25 under the Samudra Manthan programme and declared two new hydrocarbon discoveries.
- Who
- Oil and Natural Gas Corporation (ONGC), India's state-owned upstream oil and gas major, along with group companies including HPCL.
- What
- ONGC reported a 112.3% jump in standalone net profit to Rs 17,033.81 crore for the June quarter, driven by sharply higher crude oil and gas realisations despite lower production.
- Where
- India, including the Mahanadi deepwater basin, the KG-98/2 block in the Eastern Offshore and the Western Offshore region.
- When
- First quarter of fiscal year 2026-27 (April-June); the deepwater exploration well was spudded on July 25.
- Why
- Higher global crude oil prices following the West Asia crisis and improved new-well gas realisations boosted earnings.
Key facts
- Standalone net profit
- Rs 17,033.81 crore (up 112.3% YoY)
- Revenue from operations
- Rs 46,460.45 crore (up 45.2% YoY)
- Profit before tax (quarterly record)
- Rs 22,848.02 crore
- Consolidated net profit
- Rs 6,554.44 crore (down 43.3% YoY)
- Net crude realisation
- $99.45 per barrel (up 50.4% YoY)
- New-well gas realisation
- $13.31 per mmBtu (up 61.5% YoY)
- Crude production (Q1)
- Fell 5.5% YoY to 4.95 million tonnes (another report cites 4.452 million tonnes)
- Deepwater well spudded
- Well MNDWO181HDB-1 in Mahanadi basin, July 25, at about 765 metres water depth
Sources
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