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ONGC Third Quarter Results: Oil and Natural Gas Corporation (ONGC) released its October-December quarter results for fiscal year 2023-24 (Q3FY24), reporting a decline of around 10 per cent to $10,356 crore, compared to $11,489 crore in the same period of the previous year.
The state oil giant’s operating income during the third quarter of the current fiscal year stood at $1,65,569 crore, registering a decline of 2.2 per cent, as compared to $1,69,213 crore in the same period of the previous year.
The board of directors of ONGC has approved a second interim dividend of 80 per cent, i.e. $4 per share of capital of nominal value of $5 each for fiscal year 2023-24. The total payment on this account will be $5,032 crore. The record date to determine shareholder eligibility for dividend payment was set at February 17, 2024.
The dividend will be paid to eligible shareholders on or before March 10, 2024. This provisional dividend is added to the first provisional dividend of $5.75 per share (115 percent) declared in early November 2023.
During the third quarter, ONGC’s total crude oil production fell 3.3 percent to 5,219 million metric tons (MMT) from 5,396 MMT in Q3FY23. Meanwhile, ONGC’s natural gas production decreased 4.3 percent to 5.12 billion cubic meters (BCM) in the third quarter, down from 5.35 BCM in the same period a year earlier.
ONGC said the reduction in production can be mainly attributed to closure of the Panna-Mukta offshore platforms for commissioning of a new pipeline to modernize its evacuation facilities after taking over the joint venture partners (JV ).
Cyclone Biparjoy (June 2023) also disrupted offshore and onshore production. Southern Asset’s crude oil production was hampered because a refinery stopped receiving oil, following a leak in its pipeline, and the natural decline of mature fields also led to reduced production, the oil explorer explained.
“To counter the decline in production from some of the mature and marginal fields, ONGC is taking proactive measures by implementing well interventions and advancing new well drilling activities,” ONGC said in its exchange filing.
The decline in production from mature fields will be offset in the coming quarters by the start of additional production from upcoming projects, which are in various stages of development, while crude oil production started from KG 98/ 2, according to ONGC.
ONGC has declared a total of nine discoveries (four onshore and five offshore) during fiscal year 2023-24 in its operated areas. Of these, five are prospects (abroad) and four onshore are new deposits. ONGC has monetized six discoveries to date during FY 2023-24.
ONGC, which accounts for about two-thirds of India’s oil and more than 50 percent of its gas production, announced the start of “first oil” from the deepwater block KG-DWN-98/2, located off the Bay coast. of Bengal on January 7, 2024.
The company’s board of directors approved the appointment of KC Ramesh as the company’s chief financial officer (CFO) with immediate effect. On Friday, ONGC shares closed 2.32 percent lower in $266.95 each on the BSE.
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