Crude Oil Production (Standalone)
18.558 MMT
+0.9% YoY
First increase in years; driven by well interventions and new drilling.
ONGC
Diversified
21 May 2025
Ongc Ltd — Q4 FY25
ONGC's Q4 FY25 standalone PAT declined 12.1% YoY to INR 35,610 crore, primarily due to a INR 4,257 crore increase in exploration write-offs.
Financial stats pending filing verification
2-Minute Summary
✦ AI-Generated from Full Transcript
ONGC's Q4 FY25 standalone PAT declined 12.1% YoY to INR 35,610 crore, primarily due to a INR 4,257 crore increase in exploration write-offs. Revenue was flat at INR 137,361 crore. Crude oil production rose 0.9% to 18.558 MMT, while gas production fell 1.6% to 19.654 BCM. Management highlighted a record 578 wells drilled and INR 62,000 crore CapEx, the highest ever. Key growth drivers include the KG 98/2 field (oil at 33-34 kbpd, targeting 45 kbpd), new well gas pricing adding INR 700 crore in FY25, and OPaL's turnaround post-SEZ denotification. Guidance points to standalone crude production of ~21.5 MMT and gas of ~21 BCM in FY26, with 5 MSCMD incremental gas from DUDP by Q4 FY26. Risks include continued dry well write-offs and delayed KG 98/2 gas ramp-up due to living quarters installation.
ONGC की चौथी तिमाही (Q4 FY25) में शुद्ध मुनाफा 12.1% घटकर 35,610 करोड़ रुपये रहा। इसकी मुख्य वजह तेल और गैस की खोज में 4,257 करोड़ रुपये का अतिरिक्त खर्च (जिसे 'एक्सप्लोरेशन राइट-ऑफ' कहते हैं) था। कंपनी की कमाई (रेवेन्यू) 1,37,361 करोड़ रुपये पर स्थिर रही। कच्चे तेल का उत्पादन 0.9% बढ़कर 18.558 मिलियन टन हुआ, जबकि गैस का उत्पादन 1.6% घटकर 19.654 बिलियन क्यूबिक मीटर रहा। कंपनी ने रिकॉर्ड 578 कुएं खोदे और 62,000 करोड़ रुपये का सबसे बड़ा निवेश (कैपेक्स) किया। भविष्य में KG 98/2 क्षेत्र से तेल उत्पादन बढ़ाने और नई गैस कीमतों से 700 करोड़ रुपये अतिरिक्त कमाई की उम्मीद है। अगले साल कच्चे तेल का उत्पादन 21.5 मिलियन टन और गैस का 21 बिलियन क्यूबिक मीटर रहने का अनुमान है। जोखिमों में सूखे कुओं पर खर्च और KG 98/2 में गैस उत्पादन में देरी शामिल है।
Key Numbers
Natural Gas Production (Standalone)
19.654 BCM
-1.6% YoY
Decline due to mature fields; expected to reverse with new projects.
Wells Drilled
578
+35-year high
Highest in 35 years; 109 exploratory and 469 development wells.
Reserve Replacement Ratio
1.35x
19th consecutive year >1
Domestic fields excluding JV; ensures long-term production sustainability.
What Changed vs Last Quarter
NEW
Standalone crude oil production target of ~21.5 MMT for FY26
Management expects crude production to rise to 21.5 million metric tons in FY26, driven by TSP initiatives and new wells.
NEW
Standalone gas production target of ~21 BCM for FY26
Gas production expected to reach 21 BCM in FY26, with 5 MSCMD incremental from DUDP by Q4 FY26.
NEW
New well gas to add INR 1,500-2,000 crore revenue in FY26
Revenue from new well gas pricing expected to double from INR 700 crore in FY25 to INR 1,500-2,000 crore in FY26.
UPDATED
CapEx guidance of INR 30,000-35,000 crore for FY26
Total CapEx including E&P and renewables expected to be INR 30,000-35,000 crore, lower than FY25 due to falling service costs.
DROPPED
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.
DROPPED
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.
DROPPED
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.
NEW RISK
Dry well write-offs may persist
Exploration write-offs surged to INR 4,257 crore in FY25; management noted unpredictability in dry well incidence, which could pressure earnings.
NEW RISK
KG 98/2 gas ramp-up delayed by living quarters installation
Gas production currently at 2.75 MSCMD; target of 6-7 MSCMD hinges on installing a living quarters platform, delayed due to weather.
NEW RISK
OPaL ethane sourcing timeline uncertainty
OPaL's ethane import from US is targeted for 2028; any delay could prolong reliance on costlier naphtha (60% of feedstock).
RISK GONE
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.
RISK GONE
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.
RISK GONE
Geopolitical risks to OVL assets
OVL's Russian assets are underperforming due to the Ukraine conflict, and Venezuelan operations face sanctions and operational uncertainty.
RISK GONE
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.
🤫 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.
Mentioned in Q2 FY25, Q4 FY24
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.
Mentioned in Q2 FY24, Q2 FY25
Management expects OPaL to improve significantly from next year due to lower interest costs and cheaper feedstock from new well gas allocation.
Mentioned in Q1 FY25, Q2 FY25
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.
Management Guidance
Standalone crude oil production target of ~21.5 MMT for FY26
Management expects crude production to rise to 21.5 million metric tons in FY26, driven by TSP initiatives and new wells.
Management guidance growthStandalone gas production target of ~21 BCM for FY26
Gas production expected to reach 21 BCM in FY26, with 5 MSCMD incremental from DUDP by Q4 FY26.
Management guidance growthCapEx guidance of INR 30,000-35,000 crore for FY26
Total CapEx including E&P and renewables expected to be INR 30,000-35,000 crore, lower than FY25 due to falling service costs.
Management guidance capexNew well gas to add INR 1,500-2,000 crore revenue in FY26
Revenue from new well gas pricing expected to double from INR 700 crore in FY25 to INR 1,500-2,000 crore in FY26.
Management guidance revenueKey Risks
Dry well write-offs may persist
Exploration write-offs surged to INR 4,257 crore in FY25; management noted unpredictability in dry well incidence, which could pressure earnings.
medium · management_commentaryKG 98/2 gas ramp-up delayed by living quarters installation
Gas production currently at 2.75 MSCMD; target of 6-7 MSCMD hinges on installing a living quarters platform, delayed due to weather.
high · analyst_questionOPaL ethane sourcing timeline uncertainty
OPaL's ethane import from US is targeted for 2028; any delay could prolong reliance on costlier naphtha (60% of feedstock).
medium · data_observationNotable Quotes
If you discount these write-offs, then our profit is at the same level.
In one year, I do not know how many examples in the world is there where you jump from 0.1, 0.2 GW- 2.5 GW in four months' time.
We are very, very confident that we will have our growth story intact.
Frequently Asked Questions
What was Ongc's revenue in Q4 FY25?
Ongc reported revenue of ₹1,37,361 Cr in Q4 FY25, representing a -0.3% change compared to the same quarter last year.
What guidance did Ongc management give for FY26?
Standalone crude oil production target of ~21.5 MMT for FY26: Management expects crude production to rise to 21.5 million metric tons in FY26, driven by TSP initiatives and new wells. Standalone gas production target of ~21 BCM for FY26: Gas production expected to reach 21 BCM in FY26, with 5 MSCMD incremental from DUDP by Q4 FY26. CapEx guidance of INR 30,000-35,000 crore for FY26: Total CapEx including E&P and renewables expected to be INR 30,000-35,000 crore, lower than FY25 due to falling service costs. New well gas to add INR 1,500-2,000 crore revenue in FY26: Revenue from new well gas pricing expected to double from INR 700 crore in FY25 to INR 1,500-2,000 crore in FY26.
What are the key risks for Ongc in FY26?
Key risks include Dry well write-offs may persist — Exploration write-offs surged to INR 4,257 crore in FY25; management noted unpredictability in dry well incidence, which could pressure earnings.; KG 98/2 gas ramp-up delayed by living quarters installation — Gas production currently at 2.75 MSCMD; target of 6-7 MSCMD hinges on installing a living quarters platform, delayed due to weather.; OPaL ethane sourcing timeline uncertainty — OPaL's ethane import from US is targeted for 2028; any delay could prolong reliance on costlier naphtha (60% of feedstock)..
Did Ongc meet its previous quarter's guidance?
Of 2 tracked promises, management 0 met, 1 close, 1 missed.
Where can I read the full Ongc Q4 FY25 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.