ONGC Q3 results: Net profit drops 7.9% to Rs 10,748 cr, firm declares dividend

Oil and Natural Gas Corporation (ONGC) posted a consolidated net profit of Rs 10,748 crore in the December-end quarter. The state-run petroleum giant's revenue from operations in third quarter of current fiscal stood at ₹1,65,569 crore, seeing a decline of 2.2 per cent, compared to ₹1,69,213 crore in the year-ago period.

ONGC, which accounts for 67% of India’s oil and 54% its gas production, also declared an interim dividend of 80 per cent, i.e. ₹4 per equity share. The date for distribution of dividend has been fixed for 17th February, 2024 which has been intimated to the stock exchanges. This is in addition to 1st interim dividend of ₹ 5.75 per share(115%) declared earlier in Nov,2023.

The oil major is spending $2 billion to recapitalize its petrochemical subsidiary ONGC Petro additions Ltd, which will also help raise its stake in the venture to 95% from 49%. Higher earnings will help the firm meet its ambitious investment goals.

ONGC’s quarterly oil production declined 3.3% and gas output fell 4.3% from a year earlier. Earnings on every barrel of crude declined 6.4% to $81.59 and that on gas fell 24.2% to $6.50 per million Btu.

“To counter the decline in production from some of the matured and marginal fields, ONGC is taking proactive steps by implementing well interventions and advancing new well drilling activities,” the company said in a statement.