Oil and Natural Gas (ONGC) Q2 24/25 earnings summary

Executive summary

• Net profit for Q2 FY25 rose 17.1% year-over-year to INR 11,984 crore, while H1 FY25 profit increased marginally by 0.8% to INR 20,922 crore.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2024, and declared an interim dividend of ₹6 per share (120%).

• Consolidated net profit dropped 38.92% in Q2 FY25 and 41.52% in H1 FY25, mainly due to lower profits from subsidiaries HPCL and MRPL.

• Gained control over ONGC Petro Additions Limited (OPAL), increasing shareholding from 49.36% to 91.16% during the quarter.

• Board approved an interim dividend of INR 6 per share, totaling INR 7,548 crore.

Financial highlights

• Standalone revenue from operations for Q2 FY25 was ₹33,880.88 crore, with net profit at ₹12,062.66 crore; for H1 FY25, revenue was ₹69,147.26 crore and net profit ₹20,922.12 crore.

• Consolidated revenue from operations for Q2 FY25 was ₹158,329.10 crore, with net profit at ₹9,878.44 crore; for H1 FY25, revenue was ₹326,353.90 crore and net profit ₹19,688.62 crore.

• Crude realization in Q2 FY25 was INR 6,561/bbl, down 6.4% year-over-year; H1 FY25 realization rose 1.6% to INR 6,744/bbl.

• Statutory levies, royalty, and excise duty expenses fell 27.4% in Q2 FY25 and 3.5% in H1 FY25, mainly due to lower crude prices and reduced special additional excise duty.

• Net cash generated from operating activities (standalone) for H1 FY25 was ₹36,901.40 crore.

Outlook and guidance

• Oil production guidance for FY25-26 is 22.8 million tons, with total oil and gas equivalent at 44.9 million tons; FY26-27 guidance is 46.2 million tons.

• Gas production from KG-DWN-98/2 expected to reach 10 MMSCMD by end FY25 or early FY26; oil production from the same field targeted at 45,000 barrels/day by FY25 end.

• Daman Upside and DSF-2 gas projects to be completed by FY26, with production ramp-up expected within six months post-completion.

• An arbitral award regarding the Panna-Mukta and Tapti JV is expected by December 2024, which may impact contingent liabilities.