ONGC Q4 Results: Net Profit Climbs 78% To Rs 11,526 Crore, Rs 2.50 Dividend Declared

The Oil and Natural Gas Corporation (ONGC) has reported a 78% rise in consolidated net profit at Rs 11,526.53 crore in the quarter ending March 31 of the fourth quarter of the fiscal year 2023-24, compared to Rs 6,478 crore in the same period last year (Q4FY23).

This impressive growth marks a notable milestone for the state-owned oil and gas exploration giant.

Sequentially, ONGC's consolidated net profit exhibited a marginal increase in the quarter ended March 31, rising from Rs 11,104.50 crore posted in the previous quarter.

This steady growth highlights the company's consistent performance amidst fluctuating market conditions.

The fourth quarter of the current fiscal year saw a modest increase in revenue from operations, totaling Rs 1.66 lakh crore as opposed to Rs 1.64 lakh crore during the same period last year.The slight rise highlights ONGC's adaptability and capacity to sustain its income source in the face of economic difficulties.

In a move that will please shareholders, the company's board of directors has recommended a final dividend of Rs 2.50 per equity share of face value of Rs 5 each for the financial year 2023-24.

This recommendation is subject to shareholder approval and reflects ONGC's strong financial health and commitment to returning value to its investors.

Highlights:

• The highest ever standalone net profit of Rs 40,526 crore for FY'24
• The highest ever consolidated net profit of Rs 57,101 crore for FY'24
• The highest ever total dividend of Rs. 15,411 crore for FY'24
• 11 discoveries made and 7 monetized in FY'24
• Crude oil production of 5.359 MMT in Q4 FY'24, up by 2.4% Q-o-Q

ONGC's earnings before interest, tax, depreciation, and amortisation (EBITDA) for Q4 saw a substantial increase, rising to Rs 25,772 crore from Rs 15,752 crore during the corresponding period last year. This significant jump in EBITDA is indicative of the company's enhanced operational efficiency and robust financial management.

"ONGC's overseas arm, ONGC Videsh Ltd., registered production of oil and gas of 10.518 MMTOE in FY'24, as compared to 10.171 MMTOE in FY'23, which is 3.4% incremental growth compared to the previous year. This positive performance was driven by strong contributions from five operated or jointly operated assets, namely MECL and CPO-5 in Colombia, GPOC and SPOC in South Sudan, and Sancristobal in Venezuela, despite natural decline, geopolitical tensions, and local issues," the company added.

Furthermore, the company's Q4 revenue was expected to decline marginally by 1.11% to Rs 34,404 crore, and EBITDA was seen falling by half a percent year-on-year to Rs 17,251 crore. Contrary to these predictions, ONGC reported strong financial results, driven by higher crude oil realisations and improved operational efficiency.

"The gross of export duty (GRM) average for FY 2023-2024 was US$ 9.08 per barrel, down from US$ 12.09 per barrel in the prior fiscal year. The reduction in GRMs is in line with the trend of international product cracks," the company said in a statement.

Crude oil price realisation from ONGC's nominated fields was $80.81 per barrel for Q4, compared to $77.12 per barrel for the same period last year. This increase in price realisation contributed to the company's impressive financial performance.

In terms of production, ONGC's total crude oil output for the fourth quarter increased by 2.4% year-on-year to 5.359 million metric tonnes (MMT). However, for the entire fiscal year 2023-24, the company's total oil production declined by 1.6 percent. ONGC's total gas production in Q4 declined by 3% to 5.101 billion cubic metres (BCM) from the previous year, highlighting some operational challenges in gas production.

During FY24, ONGC made 11 significant discoveries in its operated acreages, comprising six onland and five offshore discoveries. Of these, six are prospects (one onland and five offshore), and five are new pool discoveries onland. These discoveries underscore ONGC's ongoing efforts in exploration and resource augmentation.

Moreover, ONGC drilled 541 wells in FY24, marking the highest number recorded in the past 34 years. This total includes 103 exploratory wells and 438 development wells, reflecting the company's aggressive drilling strategy and commitment to enhancing production capabilities.

"OTPC's two power units of 363.3 MW each are fully operational. In FY'24, OTPC earned revenue from operations of Rs. 1,547 crore and PAT of Rs. 70 crore. The company has paid an interim dividend of 2%, i.e., Rs. 0.20 per share, during the year. ONGC would get a total dividend of Rs. 11.20 crore from OTPC for FY'24," ONGC said.

ONGC invested approximately Rs 37,000 crore in capital expenditure in FY24, a significant increase from the Rs 30,208 crore spent in the previous year. This substantial investment highlights ONGC's focus on expanding its operational footprint and enhancing its production capacity.

ONGC's Q4 results reflect a robust financial performance with significant increases in net profit and EBITDA, despite market challenges. The company's strategic investments and operational efficiencies have positioned it well for sustained growth and shareholder value creation.

ONGC About:

The company is headquartered in Delhi. ONGC was founded on August 14, 1956, by the Government of India. It is the largest government-owned oil and gas explorer and producer in the country and produces around 70% of India's domestic production of crude oil and around 84% of natural gas.