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; H1 FY25 net profit up 0.8% to INR 20,922 crore.

• Standalone and consolidated financial results for Q2 and H1 FY25 approved; interim dividend of INR 6/share (120%) declared.

• Gained control over OPaL, increasing shareholding to 95.69% after major capital infusion.

• Consolidated net profit declined 38.92% in Q2 FY25 and 41.52% in H1 FY25 due to lower subsidiary profits.

Financial highlights

• Q2 FY25 standalone revenue was INR 33,880.88 crore, net profit INR 12,062.66 crore; H1 FY25 revenue INR 69,147.26 crore, net profit INR 20,922.12 crore.

• Consolidated revenue for Q2 FY25 was INR 158,329.10 crore, net profit INR 9,878.44 crore; H1 FY25 revenue INR 326,353.90 crore, net profit INR 19,688.62 crore.

• Q2 FY25 sales revenue decreased 3.5% year-over-year due to lower crude prices; H1 FY25 sales revenue up 0.4% on higher value-added product sales.

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

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

Outlook and guidance

• Oil production guidance: 22.8 million tons in FY25-26, 22.1 million tons gas equivalent; total 44.9 million tons oil and oil equivalent.

• FY26-27 guidance: 46.2 million tons oil and oil equivalent.

• KG-DWN-98/2 oil production expected to reach 45,000 bbl/day by FY25-end; gas to ramp up to 10 MMSCMD by FY25-end or early FY26.

• Arbitral award regarding Panna-Mukta and Tapti JV expected by December 2024, may impact contingent liabilities.