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

Executive summary

• ONGC reversed its declining production trend in crude oil and natural gas for FY 2024-25, with significant increases in both oil and gas output, driven by new projects and technical collaborations, including all 13 Eastern Offshore wells operational at ~35,000 BOPD oil and ~3 MMSCMD gas.

• OPaL became a subsidiary with a 95.69% stake after a significant equity infusion of ₹18,365 crore, improving its financial structure.

• ONGC contributed ₹13,19,334 crore to the government till Dec 2024, with ₹51,822 crore in 9M FY'25.

• The company is expanding its green energy portfolio, targeting 10 GW by 2030, and has established ONGC Green Limited for renewables.

• Board approved unaudited standalone and consolidated results for Q3 and nine months ended December 31, 2024, and declared a second interim dividend of ₹5 per share.

Financial highlights

• Standalone oil production grew 1.02% year-over-year for the nine months ended December 2024; total production (including JV) reached 30.81 MMTOE.

• Standalone Q3 FY25 revenue from operations: ₹33,716.8 crore (down from ₹34,788.1 crore YoY); nine months revenue: ₹102,864.1 crore.

• Standalone Q3 net profit: ₹8,239.9 crore (down from ₹9,891.7 crore YoY); nine months net profit: ₹29,162.0 crore.

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

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

Outlook and guidance

• Production guidance for FY25-27 is 42.44–44.51 MMTOE, with oil at 21.96–22.63 and gas at 22.63 MMTOE.

• Targeting Net Zero for Scope 1 & 2 emissions by 2038 and 10 GW green energy capacity by 2030, with 1 GW tender already out.

• 25 major projects underway, including Daman Upside and DSF2, expected to add significant gas volumes by 2026 and envisaged lifecycle gain of 92.52 MMTOE.

• 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.