ONGC shares in focus as Q2 profit falls 18% YoY – News Air Insight

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Shares of Oil and Natural Gas Corporation (ONGC) are likely to be in focus on Tuesday, November 11, after the company reported an 18% year-on-year (YoY) decline in quarterly net profit. The July-September net profit stood at Rs 9,848 crore, weighed down primarily by lower oil prices.

Revenue from operations fell 2.5% to Rs 33,031 crore during the quarter. ONGC also declared an interim dividend of Rs 6 per equity share for the current fiscal year, amounting to a total payout of Rs 7,548 crore.

The company realised a crude oil price of $67.34 per barrel from its nominated fields, a 14% drop compared to the same period last year. Realisation from joint venture fields also declined 12.3%.

On the gas side, natural gas price realisation from nominated fields was 3.8% higher at $6.75 per mmBtu, while average prices from new well gas fell 11.3% to $8.36 per mmBtu, reflecting volatility linked to crude oil rates.

Standalone crude oil production increased 1.2% during the quarter, while the company managed to arrest the decline in gas production.


In a strategic move, ONGC’s board approved an equity infusion of up to Rs 421.50 crore in Ayana Renewable Power Pvt Ltd. The investment will be routed through ONGC’s wholly owned subsidiary, ONGC Green Limited (OGL), which jointly owns Ayana along with NTPC. Ayana currently has 4.1 GW of operational and under-construction renewable energy assets.Additionally, ONGC’s board approved two identical joint ventures with Mitsui O.S.K. Lines Ltd (MOL) in a 50:50 shareholding structure. These ventures aim to expand ONGC’s presence in the ethane transportation segment via Very Large Ethane Carriers (VLECs).Also read: Tata Motors CV arm listing date announced. Check details

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