ONGC Sees Profits Soar as Crude Oil Prices Surge

India's largest oil and gas producer, ONGC, saw its Q1 profit more than double to Rs 17,034 crore due to a rally in crude oil prices triggered by West Asia conflict. The company reported a consolidated net profit of Rs 17,033.81 crore for the quarter ended June 30.

The increase is a sharp rebound from Rs 8,024.23 crore in the same period last year and a sequential improvement over Rs 6,649.97 crore earned in January-March quarter. International benchmark crude prices surged by nearly 50 percent after the conflict escalated in late February, allowing upstream producers like ONGC to realise higher prices for their production.

ONGC's total income climbed to Rs 48,321.65 crore during the April-June quarter, compared with Rs 33,213.39 crore in the same period last year, representing an increase of nearly 46 percent. The earnings are likely to strengthen ONGC's ability to fund capital expenditure for exploration and production enhancement projects.