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Oil & Natural Gas Corporation — Q2 FY25
ONGC reported a 17.1% YoY increase in standalone PAT to ₹11,984 crore for Q2 FY25, driven by lower statutory levies and stable production.
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ONGC reported a 17.1% YoY increase in standalone PAT to ₹11,984 crore for Q2 FY25, driven by lower statutory levies and stable production. Crude oil production grew 0.7% YoY to 4.576 MMT, reversing a declining trend, aided by the KG-DWN-98/2 field now producing 25,000+ bopd. Gas production decline slowed to 2.1% in Q2. The government's new well gas policy (12% of Indian crude basket) and OPaL investment (₹18,365 crore for 95.69% stake) are key strategic moves. Management guided for peak oil production of 45,000 bopd by FY25-end and gas ramp-up to 10 MMSCMD from KG field. Capex for FY26-27 is guided at ₹34,000-36,000 crore. Risk: OPaL turnaround remains uncertain with current losses of ₹637 crore in Q2.
ONGC ने दूसरी तिमाही (जुलाई-सितंबर 2024) में अपना मुनाफा पिछले साल की तुलना में 17.1% बढ़ाकर ₹11,984 करोड़ कर लिया। इसकी वजह कम सरकारी फीस और स्थिर उत्पादन रही। कच्चे तेल का उत्पादन 0.7% बढ़कर 4.576 मिलियन टन हो गया, जो पहले गिर रहा था। KG-DWN-98/2 खेत से अब रोज 25,000 बैरल से ज्यादा तेल निकल रहा है। गैस उत्पादन की गिरावट भी धीमी हुई। सरकार की नई गैस नीति और OPaL में ₹18,365 करोड़ का निवेश अहम कदम हैं। कंपनी का लक्ष्य मार्च 2025 तक रोज 45,000 बैरल तेल और KG खेत से 10 मिलियन क्यूबिक मीटर गैस निकालना है। अगले दो साल में ₹34,000-36,000 करोड़ खर्च होंगे। लेकिन OPaL को अभी भी ₹637 करोड़ का घाटा हो रहा है, जो जोखिम है।
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Crude oil production (standalone Q2 FY25)
4.576 MMT
+0.7% YoY
Reversed declining trend; KG-DWN-98/2 contributed 25,000+ bopd.
KG-DWN-98/2 oil production
25,000+ bopd
N/A
From eight flowing wells; peak guidance of 45,000 bopd by FY25-end.
New well gas allocation
4.68 MMSCMD
N/A
Priced at 12% of Indian crude basket (~$9/MMBtu), effective from September 2024.
OPaL plant utilization (Q2 FY25)
94%
N/A
Revenue ₹3,664 crore, EBITDA ₹78.67 crore, PAT loss narrowed to ₹637 crore.
What Changed vs Last Quarter
NEW
Peak oil production of 45,000 bopd from KG-DWN-98/2 by FY25-end
Management confirmed on track to reach 45,000 barrels of oil per day from the KG field by the end of the current financial year.
NEW
Gas ramp-up to 10 MMSCMD from KG field by FY25-end or early FY26
Gas production from the East Coast is expected to reach 10 MMSCMD by the end of FY25 or early FY26.
NEW
Capex guidance of ₹34,000-36,000 crore for FY26 and FY27
Capital expenditure is expected to remain in the range of ₹34,000-36,000 crore for the next two financial years.
NEW
OPaL turnaround expected from FY26 onwards
Management expects OPaL to improve significantly from next year due to lower interest costs and cheaper feedstock from new well gas allocation.
DROPPED
KG 98/2 oil production to reach 30,000 bpd by Q3 FY25
Management expects oil production from KG 98/2 to increase from current 12,000 bpd to 30,000 bpd by Q3 FY25, with peak of 45,000 bpd in subsequent quarters.
DROPPED
KG 98/2 gas production to reach 6 MMSCMD by March 2025
Gas production from KG 98/2 is expected to reach 6 million standard cubic meters per day by end of March 2025.
DROPPED
Standalone oil production target of 20.5 MMT for FY25
ONGC standalone oil production target for FY25 is 20.5 MMT, with JV contributing 1.71 MMT, totaling 22.3 MMT.
DROPPED
CapEx guidance of INR 32,000-33,000 crore for FY25 standalone
ONGC standalone CapEx for FY25 is planned at around INR 32,000-33,000 crore, excluding green energy investments.
NEW RISK
OPaL profitability uncertain
OPaL reported a PAT loss of ₹637 crore in Q2 FY25; management declined to provide near-term profitability guidance, citing dependence on product and feedstock prices.
NEW RISK
Crude price volatility impacting revenue
Sales revenue decreased 3.5% YoY in Q2 due to lower crude realizations (₹6,561/bbl vs ₹7,013/bbl). Further price declines could pressure earnings.
NEW RISK
Geopolitical risks to OVL assets
OVL's Russian assets are underperforming due to the Ukraine conflict, and Venezuelan operations face sanctions and operational uncertainty.
NEW RISK
Gas production decline may persist
Despite new well gas, overall gas production declined 2.1% YoY in Q2; management expects a natural decline rate of 7.5% for nominated fields, which could offset gains.
RISK GONE
Slower ramp-up of KG 98/2 due to weather
Management cited rough weather as a cause for slower production ramp-up; further delays could impact production targets.
RISK GONE
Windfall tax applicability on KG Basin oil
Analyst raised concern about windfall tax on KG Basin oil; management stated they do not anticipate it currently, but uncertainty remains.
RISK GONE
Mozambique project delays
TotalEnergies' Mozambique LNG project faces delays due to elections; OVL's CapEx may increase once force majeure is lifted.
RISK GONE
OPaL losses continue
OPaL reported PAT loss of INR 983 crore in Q1 FY25; restructuring awaits government clearance, posing downside risk.
🤫 Topics management stopped discussing
Mentioned in Q1 FY25, Q2 FY24, Q4 FY24
Analyst raised concern about windfall tax on KG Basin oil; management stated they do not anticipate it currently, but uncertainty remains.
Mentioned in Q1 FY25, Q2 FY24
OPaL reported PAT loss of INR 983 crore in Q1 FY25; restructuring awaits government clearance, posing downside risk.
Fast read
Guidance and risk preview
Management confirmed on track to reach 45,000 barrels of oil per day from the KG field by the end of the current financial year.
OPaL reported a PAT loss of ₹637 crore in Q2 FY25; management declined to provide near-term profitability guidance, citing dependence on product an...
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