Crude oil realization (Q2 FY24)
$84.84/bbl
-$10.66/bbl YoY
Gross billing for crude decreased from $95.50/bbl in Q2 FY23.
ONGC
Diversified
10 Nov 2023
Ongc Ltd — Q2 FY24
ONGC reported a standalone PAT of INR 10,216 crore for Q2 FY24, down 20.3% YoY due to lower crude realizations and higher operating expenditure.
Financial stats pending filing verification
2-Minute Summary
✦ AI-Generated from Full Transcript
ONGC reported a standalone PAT of INR 10,216 crore for Q2 FY24, down 20.3% YoY due to lower crude realizations and higher operating expenditure. Consolidated PAT surged 142.36% YoY to INR 16,553 crore, driven by strong performance from subsidiaries HPCL, MRPL, and OVL. Crude realization fell to $84.84/bbl from $95.50/bbl YoY. The KG 98/2 project is expected to commence oil production imminently, with gas ramp-up to 10 MMSCMD by FY25. Management guided for ~1% production growth in FY24 and 4-5% in FY25, with capex of INR 33,000-35,000 crore. Key risks include windfall tax volatility and OPaL's continued losses, which management expects to turn around by FY25 pending government approval for equity infusion.
ONGC ने दूसरी तिमाही में अकेले मुनाफा 10,216 करोड़ रुपये बताया, जो पिछले साल से 20.3% कम है। इसकी वजह कच्चे तेल की कम कीमत और ज्यादा खर्च है। लेकिन पूरी कंपनी का मुनाफा 142.36% बढ़कर 16,553 करोड़ रुपये हो गया, क्योंकि इसकी सहायक कंपनियां HPCL, MRPL और OVL ने अच्छा प्रदर्शन किया। कच्चे तेल की कीमत 95.50 डॉलर प्रति बैरल से घटकर 84.84 डॉलर हो गई। KG 98/2 परियोजना से जल्द तेल निकलना शुरू होगा और गैस उत्पादन 2025 तक बढ़कर 10 MMSCMD हो जाएगा। प्रबंधन का अनुमान है कि 2024 में उत्पादन 1% और 2025 में 4-5% बढ़ेगा। कंपनी 33,000-35,000 करोड़ रुपये खर्च करेगी। जोखिमों में विंडफॉल टैक्स और OPaL का घाटा शामिल है, जो 2025 तक सरकार की मंजूरी से ठीक हो सकता है।
Key Numbers
KG 98/2 oil production target (FY25)
1.5 MMT
New production
Oil production from KG 98/2 expected to ramp up to 45,000 bpd by FY25.
KG 98/2 gas production target (FY25)
10 MMSCMD
New production
Gas production from KG 98/2 expected to reach 10 million cubic meters per day.
Interim dividend
115% (INR 5.75/share)
Total payout INR 7,234 crore
Board approved interim dividend of 115% on equity shares of INR 5 each.
Management Guidance
Production growth of ~1% in FY24 and 4-5% in FY25
ONGC standalone production expected to be flat to slightly up in FY24, with 4-5% growth in FY25 driven by KG 98/2 ramp-up.
Management guidance growthCapex of INR 33,000-35,000 crore for FY24
Management guided for a 10% increase in capex to INR 33,000-35,000 crore for the current fiscal year.
Management guidance capexOPaL turnaround by FY25
OPaL is expected to become profitable by FY25 after equity infusion of INR 18,365 crore and use of new gas for feedstock.
Management guidance otherRenewable energy target of 10 GW by 2030
ONGC aims to build a renewable energy portfolio of 10 GW by 2030, with initial acquisition of PTC Energy (288 MW) expected by end of FY24.
Management guidance expansionKey Risks
Windfall tax volatility
The Special Additional Excise Duty (SAED) on crude oil is revised every fortnight, creating uncertainty in realizations and impacting profitability.
high · management_commentaryOPaL continued losses and equity dilution
OPaL is expected to report negative EBITDA and PAT in FY24, and the proposed equity infusion of INR 18,365 crore may dilute minority shareholders.
medium · analyst_questionRussian asset dividend repatriation
Dividends of RUB 16 billion from Vankor are locked up in Russia due to sanctions, with no clear timeline for repatriation.
medium · analyst_questionKG 98/2 production ramp-up delays
While first oil is expected imminently, gas ramp-up to 10 MMSCMD depends on process platform installation by April 2024, which could face delays.
medium · data_observationNotable Quotes
The company has earned a net profit, that is profit after tax, of INR 10,216 crore during the second quarter of financial year 2024, as against INR 12,826 crore during the second quarter of financial year 2023, a decrease of INR 2,610 crore, that is 20.3%.
With respect to KG 98/2, you are very right that the oil production first start from the 98/2 is expected very shortly. The pre-commissioning activities are already ongoing in full swing, and we expect the first oil to be there in this month itself.
In renewables and new energy front, we are working very seriously, keeping our, you know, vision of achieving carbon neutral in scope one and scope two by 2038, and also to create a significant or good amount of renewable energy portfolio by 2030.
Frequently Asked Questions
What was Ongc's revenue in Q2 FY24?
Ongc reported revenue of — in Q2 FY24, representing a — change compared to the same quarter last year.
What guidance did Ongc management give for FY25?
Production growth of ~1% in FY24 and 4-5% in FY25: ONGC standalone production expected to be flat to slightly up in FY24, with 4-5% growth in FY25 driven by KG 98/2 ramp-up. Capex of INR 33,000-35,000 crore for FY24: Management guided for a 10% increase in capex to INR 33,000-35,000 crore for the current fiscal year. OPaL turnaround by FY25: OPaL is expected to become profitable by FY25 after equity infusion of INR 18,365 crore and use of new gas for feedstock. Renewable energy target of 10 GW by 2030: ONGC aims to build a renewable energy portfolio of 10 GW by 2030, with initial acquisition of PTC Energy (288 MW) expected by end of FY24.
What are the key risks for Ongc in FY25?
Key risks include Windfall tax volatility — The Special Additional Excise Duty (SAED) on crude oil is revised every fortnight, creating uncertainty in realizations and impacting profitability.; OPaL continued losses and equity dilution — OPaL is expected to report negative EBITDA and PAT in FY24, and the proposed equity infusion of INR 18,365 crore may dilute minority shareholders.; Russian asset dividend repatriation — Dividends of RUB 16 billion from Vankor are locked up in Russia due to sanctions, with no clear timeline for repatriation.; KG 98/2 production ramp-up delays — While first oil is expected imminently, gas ramp-up to 10 MMSCMD depends on process platform installation by April 2024, which could face delays..
Did Ongc meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Ongc Q2 FY24 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.