ONGC Q3 results: Shares slip over 3% as Q3 profit falls, interim dividend announced

ONGC late on Friday, January 31, announced a 19.45% year-on-year (YoY) fall in its consolidated net profit to ₹8,621.69 crore in the third quarter of the 2024-25 financial year (Q3 FY25), compared to ₹10,703.17 crore it reported in the year-ago period.

The decline in ONGC’s profit was due to lower prices for the crude it produces. In Q3FY25, the company realised $72.57 per barrel for crude oil to be sold to refineries in contrast to $81.13 per barrel in the corresponding quarter last year.

However, the price of natural gas, which is used to generate electricity, make fertilisers, etc., remained unchanged at $6.50 per million British thermal units.

Further, the firm’s revenue from operations fell 0.75% YoY to ₹1.66 lakh crore from ₹1.67 lakh crore in the October-December quarter of the 2023-24 fiscal (Q3 FY24).

"With a focus on enhancing operational efficiency, ONGC has been able to maintain the increasing trend in crude oil production for two consecutive quarters. The standalone crude oil production (excluding condensate) during Q3 FY 25 was 4.653 million tonnes, registering a growth of 2.2% over the corresponding quarter of FY 24 (April 2023 to March 2024)," ONGC said in a press release.

Board approves interim dividend

ONGC’s Board of Directors also approved its second interim dividend of 100% i.e., ₹5 on each equity share of ₹5, with a total payout of ₹6,290 crore.

February 7 has been fixed as the record date for the interim dividend. This is in addition to the first interim dividend of ₹6 declared earlier in November 2024.

Acquisition of Mangalore SEZ Limited

The company’s board green-lit the acquisition of 1.15 crore equity shares of Mangalore SEZ Limited (MSEZ), ONGC’s joint venture from Infrastructure Leasing & Financial Services Limited (IL&FS) at ₹56.11 crore.

Stock performance

ONGC was trading in the red at ₹257.6 per share price, down 1.92% at around 2:16 pm on the NSE after Nirmala Sitharamn tabled her eighth consecutive Union Budget speech.

The stock gained 2.09% over the past five days and 10.28% during the last month.

While the scrip fell 23.54% over six months, it surged 5.51% during the past year.

The company has a market capitalisation of ₹3.27 lakh crore as of February 1, 2025, on the NSE.

About the company

ONGC has made a total of seven oil and gas discoveries (4 on land and 3 offshore) during the current FY 2024-25 so far in its operated acreages. Out of these, 5 are prospects (3 on land and 2 Offshore) and 2 (1 on land and 1 offshore) are new pools.