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ONGC’s third quarter profit declined by 14 percent to Rs 9,536 crore due to low oil prices.

New Delhi: State-owned Oil and Natural Gas Corporation (ONGC) A decline of 14 percent was recorded on Sunday Net Profit For the third quarter ending December 31, oil and gas prices fell. Standalone net profit of Rs 9,536 crore in October-December 2023 (third quarter of 2023-24 financial year) was 13.7 per cent lower than earnings of Rs 11,045 crore in the same period last financial year, the company said in a statement.
Earnings were lower as the price of crude produced and sold by the company fell 6.4 percent to US$81.59 a barrel in the quarter. Gas price was also down by 24.2 percent to US$6.5 per mmBtu.
Lower profits have also led to a decline in the production of crude oil, which is converted into fuels such as petrol and diesel in refineries, and natural gas which is used to generate electricity, produce fertiliser, convert to CNG and for cooking in kitchens. It is done through pipes.
Crude oil production fell 3.3 percent to 5.22 million tonnes, while gas output declined 4.3 percent to 5.12 billion cubic metres.
Gross revenue declined 10 percent to Rs 34,789 crore in the third quarter.
The company’s board approved a second interim dividend of 80 per cent or Rs 4 per share. “The total payment on this account will be Rs 5,032 crore,” the statement said.
This is in addition to the first interim dividend of Rs 5.75 per share declared in November last year.
ONGC’s standalone net profit fell 24 per cent to Rs 29,767 crore in the first nine months of the current financial year as oil prices fell from US $ 97.10 to US $ 75.55 per barrel. Gas prices also declined 5 percent to US$6.57 per million British thermal units.
Production for nine months was also less.
“The reduction in ONGC’s production output in the first nine months of FY 2023-24 is due to closure of Panna-Mukta offshore platforms to commission new crude oil pipeline to modernize its extraction facilities and cyclone Biparjoy (in June 2023).” Southern sector crude oil production was disrupted as a refinery stopped receiving oil after a leak in their pipeline, ONGC said.
To counter the decline in production from some mature and marginal fields, ONGC is taking proactive steps by implementing well interventions and pursuing new well drilling activities.
“The decline in production from mature fields will be compensated in the coming quarters with the commencement of additional production from upcoming projects which are in various stages of development,” the firm said, adding that crude from KG-DWN-98/2 Oil production has already started. Block January 7, 2024.
ONGC said it made nine oil and gas discoveries in the current financial year. Five of these discoveries are offshore and the remaining are on land.
Apart from the start of oil production from the deepwater KG-DWN-98/2 block in the Bay of Bengal, the other highlight was the Mandapeta field of the Rajahmundry asset, which is expected to produce 1.0 million standard cubic meters per day of gas production on October 5, 2023. had crossed. Highest ever performance since the field’s inception in 1994, through reservoir characterization and proper well placement, high volume fracking and timely addition of production facilities.
ONGC said it has also received approval to form a 100 per cent subsidiary for green energy and gas business. The wholly owned subsidiary will pursue green hydrogen, hydrogen blending, renewable energy (solar, wind and hybrid), biofuels/biogas business and LNG.

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