ONGC Profit Jumps 113% as Crude Oil Prices Soar
State-owned Oil and Natural Gas Corporation (ONGC) reported a significant increase in its profit for the April-June quarter, driven by higher crude oil prices and improved realisations. The company's net profit more than doubled to Rs 17,034 crore, up from Rs 8,024 crore in the same period last year. Total income during the quarter rose to Rs 48,321.65 crore from Rs 33,213.39 crore a year earlier.
The sharp rise in earnings was supported by stronger crude oil prices, with net crude oil realisation from nominated fields increasing to $99.45 per barrel during the quarter, up from $66.13 per barrel in the same period last year. New well gas also made a significant contribution to the company's performance, accounting for around 38% of revenue from ONGC's nomination gas portfolio.
However, production of crude oil and natural gas remained broadly steady during the quarter, with both recording marginal declines compared with a year ago. Crude oil output fell to 4.45 million tonnes from 4.68 million tonnes, while natural gas production slipped to 4.76 billion cubic metres from 4.85 billion cubic metres.