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Q1 Results: ONGC’s Profit Meets Estimates On Higher Oil, Gas Prices

Net profit rose 46 percent sequentially to Rs 5,904.3 crore in the April-June period,

An attendee stands at the Oil & Natural Gas Corp. (ONGC) news conference in New Delhi. (Photographer: Prashanth Vishwanathan/Bloomberg)
An attendee stands at the Oil & Natural Gas Corp. (ONGC) news conference in New Delhi. (Photographer: Prashanth Vishwanathan/Bloomberg)

Oil and Natural Gas Corporation Ltd.’s profit met estimates in the first quarter, helped by higher oil and gas prices.

Net profit rose 46 percent sequentially to Rs 5,904.3 crore in the quarter ended June, according to the oil and gas explorer’s exchange filing. Analyst estimates compiled by BloombergQuint had pegged the bottom line at Rs 6,006 crore.

Higher profit came as Brent crude oil prices averaged around $68.47 a barrel during the June quarter compared with $63.68 per barrel in the three months ended March 31. Gas prices too were higher by 11 percent sequentially at $3.74 per million British thermal unit.

An absence of dividend income led to the other income plunging 67 percent quarter-on-quarter to Rs 748 crore.

ONGC’s net realisation stood at $66.3 per barrel against $61.9 a barrel in the preceding quarter. Its revenue fell marginally to Rs 26,554.7 crore—also in line with the Rs 27,397-crore estimate.

Highlights (QoQ)

  • Ebitda rose 22.2 percent to Rs 15,111.9 crore.
  • Operating margin expanded 10.7 percentage points to 56.9 percent.
  • Other expenses fell 31 percent to Rs 3,973.3 crore. That was because of higher expenses in the March-ended quarter due to arbitration related provisioning, higher repair and maintenance expenses, higher CSR spends and higher administrative and rig-related costs.
  • Gas realisation were at $3.69/mmBtu from $3.36/mmBtu.
  • Crude sales down 10 percent to 5.286 million metric tonnes.
  • Gas sales down 4.2 percent to 4.996 billion cubic metres.

Shares of ONGC fell 1.72 percent before the earnings announcement compared with the benchmark S&P BSE Sensex’s 1.66 percent decline.

Q1 Results: ONGC’s Profit Meets Estimates On Higher Oil, Gas Prices