ONGC Q2 Results: Profit Rises 17% YoY to ₹11,984 Cr; Declares ₹6 Dividend

Oil and Natural Gas Corporation Ltd (ONGC) announced its financial results for the quarter ended September 2024, reporting a 17% year-on-year growth in standalone net profit to ₹11,984 crore, up from ₹10,238 crore in the same period last year. Revenue from operations fell by 4% to ₹33,881 crore as compared to ₹35,163 crore in Q2FY24. ONGC Q2 Results: The board has announced a first interim dividend of ₹6 per equity share with a face value of ₹5 for the 2024-25 financial year. November 20 has been set as the record date to determine shareholder eligibility for the dividend payment.

ONGC Q2 Results Quick Insights

• Revenue: ₹33,881 crore, down by 4% YoY.
• Net Profit: ₹11,984 crore, an increase of 17% YoY.
• EBITDA: ₹18,236 crore; EBITDA margin at 53.8%.
• Segment Performance: Offshore segment revenues fell to ₹23,004 crore, and onshore revenues declined to ₹10,871 crore.
• Dividend: ONGC declared a first interim dividend of ₹6 per equity share.
• Stock Reaction: ONGC shares closed 2.02% lower at ₹257.25 on NSE.
• Management Commentary: The company attributed its profit growth to stable production levels and operational efficiencies. The board also emphasized ONGC's continued focus on production expansion, especially from its deepwater block KG-DWN-98/2.

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Stock Market Reaction after ONGC Quarter Results

Post-results, ONGC share price saw a decline, closing at ₹257.25 on NSE, marking a 2.02% drop on November 11. Investors were cautious about declining revenues despite the positive net profit growth.

About the Company and Key Updates

ONGC, a state-owned oil and gas company, is one of India’s largest crude oil and natural gas producers. In recent updates, the company announced that three wells of the KG-DWN-98/2 Cluster-II were opened, contributing to increased oil production levels. Additional wells are expected to be operational soon, further boosting output. 

On Monday, the ONGC held a simulated exercise at the company's group collecting station, located in the Nallore hamlet close to Kovilkalappal. Personnel from the Fire and Rescue Services, the local government, and others participated in the simulated exercise that showed how the fire was extinguished after it had progressed through the first two stages. According to an ONGC release, two additional fire tenders and other essential support, like ambulance services, were brought in for assistance to "control the escalated situation" and for rescue operations, in addition to the facilities already in place, such as the Kovilkalappal GGS's security cordon and firefighting equipment.