Oil and Natural Gas (ONGC) Q3 24/25 earnings summary

Executive summary

• Annual analyst meet held after nine-month results due to significant recent developments and upcoming activities.

• Achieved increased oil and gas production in Q3 FY'25, with all 13 Eastern Offshore wells operational at ~35,000 BOPD oil and ~3 MMSCMD gas.

• OPAL became a subsidiary after ONGC increased its stake to 95.69% by December 2024, following an equity infusion of ₹18,365 crore.

• Approved acquisition of 1,15,20,000 shares in Mangalore SEZ Limited for ₹56.11 crore, subject to government concurrence.

Financial highlights

• Standalone oil production grew 1.02% year-over-year; natural gas production showed a trend reversal with marginal increase in Q3.

• Standalone Q3 FY25 revenue: ₹33,716.8 crore; nine months revenue: ₹102,864.1 crore; Q3 net profit: ₹8,239.9 crore; nine months net profit: ₹29,162.0 crore.

• Consolidated 9M FY'25 total income: ₹5,01,868 crore; EBITDA: ₹76,590 crore; PAT: ₹29,472 crore.

• Debt-equity ratio improved to 0.33 from 0.4; consolidated debt stood at ₹1,38,927 crore; strong credit ratings (Moody's Baa3 stable, S&P/Fitch BBB-).

• Second interim dividend of ₹5/share declared, with a total payout ratio of 48%.

Outlook and guidance

• CapEx of ₹36,920 crore planned for next year, focused on drilling and new projects (Daman Upside, DSF2).

• Targeting 10 GW green energy capacity by 2030 and net zero (Scope 1 & 2) by 2038.

• Production guidance for FY25-27: 42.44–44.51 MMTOE, with further upside from BP partnership.

• Focus on Cat-II basins, no-go areas, and production enhancement through international collaboration.

• Board expects arbitration award on Panna-Mukta and Tapti cost recovery by March 2025, which may impact contingent liabilities.