Q3 Results: ONGC Profit Remains Flat But Beats Estimate
Net profit of the state-run oil and gas explorer was at Rs 8,263 crore for the three months ended December
Oil and Natural Gas Corporation Ltd. profit in the October-December quarter flatlined but beat estimates as weak crude prices offset the profit gain.
Net profit of the state-run oil and gas explorer was at Rs 8,263 crore for the three months ended December compared to Rs 8,265 crore in the previous quarter. Analysts tracked by Bloomberg had pegged the profit at Rs 7,485 crore. Brent crude oil, the Asian benchmark, averaged around $68.81 per barrel compared with $75.89 per barrel in the previous quarter.
- Revenue was down 1.05 percent to Rs 27,694 crore, in line with the Rs 27,068-crore Bloomberg estimate.
- Operating profit was up 5 percent to Rs 16,571 crore.
- Operating margin expanded to 59.84 percent from 56.4 percent in the previous quarter.
The company’s crude sales were down 2 percent to 5.37 million metric tonnes sequentially. Its gas sales were up 5.5 percent to 5.323 billion cubic metres. Gas prices in the previous quarter were hiked 10 percent to $3.3 per million British Thermal Units versus $3.06 per mmBtu. Its net realisation was at $66.38 per barrel versus $73.07 a barrel in the previous quarter—an all-time high.
Earlier in December, Oil Minister Dharmendra Pradhan had said that ONGC and Oil India Ltd. spent over Rs 13,000 crore on 115 oil and gas discoveries which were taken away from them by the government for auctioning to private companies. These state-run companies are not compensated for the amount they spend on discoveries of these oil and gas reserves.
Announces Interim Dividend
The state-run company also declared a dividend of Rs 5.25 apiece. The record date to verify the eligibility of the shareholders is set for March 1, the company said in a separate filing. The said dividend is proposed to be paid on March 6.