ONGC shares hit 52-week high post-September quarter results

ONGC share price, Diwali Muhurat Trading session 2023: The state-owned gas exploration company reported a 20 per cent drop in September quarter net profit on a decline in oil prices and lower output.

Representative image. Source: Unsplash

ONGC share price, Diwali Muhurat Trading session 2023: Shares of Oil and Natural Gas Corporation (ONGC) hit a 52-week high of Rs 199.70 apiece on the BSE during the Muhurat Trading session on November 12, 2023. The state-owned gas exploration company reported a 20 per cent drop in September quarter net profit on a decline in oil prices and lower output. The company reported a net profit of Rs 10,216 crore in July–September (the second quarter of the current 2023–24 fiscal year), compared to Rs 12,826 crore in earnings in the same period last year, a statement said.

This is the second consecutive quarter of a decline in net profit for ONGC, India's top crude oil and natural gas producer. The firm had reported a 34 per cent drop in April-June profit.

ONGC earned USD 84.84 for every barrel of crude oil it produced and sold from nomination fields, against a gross realisation of USD 95.50 per barrel last year and USD 76.49 in the preceding quarter.

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Oil prices globally had risen sharply in April–June 2022, after Russia's invasion of Ukraine led to uncertainties over supply and demand. Rates have cooled this year. They were in the USD 80-90 range in the second quarter.

ONGC Director (Finance) Pomila Jaspal said the main reason for the decline in net profit is lower oil prices.

Also, oil and gas production was slightly lower than last year. This will, however, reverse in the current quarter (October–December), as the company brings to production a prolific oilfield in the KG basin.

"We will be starting production from KG-DWN-98/2 this month, and this will help raise the output and thereby earnings," she said.

Last year, the company had a Rs 1,900 crore reversal of impairment, which boosted earnings. This year, there is no such exceptional income. READ MORE

The stock eventually ended at Rs 196.80, up 0.54 per cent on the BSE.

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