ONGC Posts Record Profit on Higher Crude Oil Prices

India's largest oil producer, Oil and Natural Gas Corp (ONGC), posted a bumper profit in its first quarter due to higher crude oil prices. The company's net income more than doubled to 170.34 billion rupees ($1.8 billion) in the three months ended June, exceeding estimates compiled by Bloomberg of 152.67 billion rupees.

The New Delhi-based explorer saw revenue jump 45% from a year earlier to 464.60 billion rupees. ONGC's earnings per barrel of crude oil sold in April-June were 50.4% higher than a year ago, while gas production from old legacy fields rose 5.4%. However, production from new deepwater acreage increased by 61.5%

The company's results reflect the impact of global events on energy markets. Benchmark Brent crude prices averaged almost 50% higher in the June quarter due to disruptions caused by the US-Iran war. ONGC's earnings are crucial for its plans to reverse India's declining domestic oil and gas production.