ONGC, India’s largest government crude oil company, has announced the quarterly results of the current financial year on the previous day. The company’s net profit has fallen by more than 34 percent this quarter. Apart from this, there has also been a decline in the net income of the company. Let’s take a look at the company’s quarterly results in detail.
India’s largest government crude oil company ONGC (ONGC) has announced its quarterly results on the previous day. The performance of the company this quarter has not been very good. The net profit of the company has come down by more than 34 per cent. The company said in a statement that in the first quarter of the current financial year 2023-24 i.e. April-June, the company’s net profit has reached Rs 10,015 crore. At the same time, the net profit of the company was Rs 15,206 crore in the same period last year. Company Quarterly Results Crude oil and natural gas producer ONGC is India’s largest public sector undertaking. The company earned US$ 76.49 on every barrel of crude oil this quarter. At the same time last year, the company earned a profit of US $ 108.55 per barrel. The company’s revenue has fallen by 20 percent. Now the revenue of the company has gone up to Rs 33,814 crore.
The company has informed that there has been a decrease in the production of crude oil. Now the production of crude oil has gone up to 3.2 per cent. At the same time, gas production fell by 3.3 percent to 5.04 billion cubic meters.
Crude oil price volatility After the war in Ukraine and Russia, there has also been a situation of uncertainty with the supply and demand of crude oil all over the world. Globally, there has been a sharp increase in crude oil prices from April-June 2022. Crude oil prices continue to fluctuate even today.
Let us tell you that the crude oil extracted from under the ground and from the ocean floor is refined for the production of petrol, diesel and other fuels. Apart from this, natural gas is used to generate electricity as well as for burning kitchen stoves and making CNG for automobiles.
Due to which the production of crude oil declined, the company said in the statement that the production of ONGC has decreased in the first quarter of the financial year 2023-24. Apart from this, Cyclone Biparjoy (June 2023) had also disrupted offshore. Cyclone Biperjoy caused the shutdown of onshore production and crude wells in India after a leak in a pipeline cut off oil to a refinery there. After this, there has been a decline in the production of crude oil. Now the company is pursuing new well drilling activities.
The company said that the current decline in crude oil production is temporary. Many new projects will be started to compensate for this. Crude oil production from KG-98/2 will start in the third quarter of FY 2023-24. The company said that in the first quarter, the company made four oil and gas discoveries. The discovery covers the Central and South areas in the offshore Mumbai region. The Krishna Godavari Basin onland block impacted a new hydrocarbon bearing pay area.