ONGC Posts Bumper Q2 Profits as Crude Prices Soar

India's largest oil and gas producer, Oil and Natural Gas Corp. (ONGC), has reported a significant increase in profits for the quarter ended June. The company's net income more than doubled to 170.34 billion rupees ($1.8 billion) as higher crude oil and natural gas prices offset lower production. This beats the average estimate of 152.67 billion rupees compiled by Bloomberg.

The jump in profits is attributed to a weaker rupee and the biggest supply disruption in history caused by the US-Iran war, which led to a nearly 50% increase in benchmark Brent crude prices year-on-year. ONGC's revenue also rose 45% from the previous year to 464.60 billion rupees.

The company is investing over 400 billion rupees ($4.2 billion) in projects across its Western Offshore assets, including a partnership with BP Plc, to reverse declining domestic oil and gas production. ONGC's standalone oil and gas production declined by 3.4% year-on-year to 9.4 million tons of oil equivalent.