Oil and Natural Gas (ONGC) Q1 24/25 earnings summary

Executive summary

• Net profit for Q1 FY25 was INR 8,938 crore, down 15.1% year-over-year due to lower gas realization, higher exploration write-offs, and increased depletion costs.

• Consolidated net profit was INR 10,236 crore, a 42.8% decline, mainly due to lower subsidiary performance (HPCL, MRPL).

• Unaudited standalone and consolidated financial results for Q1 FY2024-25 were approved, with the Board meeting held on August 5, 2024.

• Appointment of Shri Aniruddha Banerjee as Chief Internal Audit, effective immediately.

• Crude production from KG 98/2 commenced, with proactive steps to offset declines in mature fields.

Financial highlights

• Standalone revenue from operations for Q1 FY25 was INR 35,266 crore, up from INR 33,814 crore in Q1 FY24.

• Consolidated revenue from operations for Q1 FY25 was INR 1,66,577 crore, up from INR 1,63,824 crore in Q1 FY24.

• Crude oil billing net of VAT/CST rose 8.8% to $83.05/bbl; rupee realization up 10.4% to INR 6,928/bbl.

• Statutory levies increased by INR 2,321 crore (31%) due to higher crude prices and special excise duty.

• Operating expenditure rose 1.9% to INR 6,079 crore; exploration cost write-offs increased by INR 627 crore.

Outlook and guidance

• Oil production from KG 98/2 expected to ramp up to 30,000+ bbl/day in Q3 and peak at 45,000 bbl/day in subsequent quarters.

• Gas production from KG 98/2 to reach 6 MMSCMD by March 2025, with further ramp-up as more wells open.

• FY25 standalone oil production guidance: 20.5 MMT; JV: 1.71 MMT; total: 22.3 MMT.

• Management continues to monitor ongoing litigations and arbitration, with significant contingent liabilities disclosed.

• FY27 oil target: 21.87 MMT standalone, 23.08 MMT total; gas target: 25.91 BCM.