Oil and Natural Gas Corporation (ONGC) has reported a net loss of INR 248 crore for the fourth quarter. This is a sharp contrast to its profit of INR 8,860 crore recorded in the same quarter of the last financial year. The ONGC board also declared a final dividend of 50 paise per share.
Revenues of the company increased 5% in the fourth quarter, reaching INR 36,293 crore. This growth is attributed to higher gas prices and several other factors. The company provided INR 12,107 crore as a provision for disputed taxes of sales tax/goods and services tax on royalty for the period between April 1, 2016 and March 31, 2023, along with the interest thereon. This significantly impacted the fourth-quarter as well as the full-year profitability.
Also, the exploration cost write-off increased to INR 4,469 crore in the fourth quarter, showing an increase of 76% year-on-year. In addition, the crude price realization from the nominated fields fell 12% year-on-year in the quarter and reached INR 6,343 per barrel. However, the gas price realization jumped 195% year-on-year and touched USD 8.57 per MMBtu.
The crude production decreased by 2.9% year-on-year while the gas output shrank 1.5% in the fourth quarter. The annual profit of the company also decreased to INR 38,829 crore compared to INR 40,032 crore last year. The revenue of the corporation rose 41% to INR 1,55,517 crore for the fiscal year 2022-23.
The total income of the company in the fourth quarter came down to INR 20,564 crore from INR 33,357 crore in the same quarter of the previous year. However, the operating profit increased to INR 14,566 crore from INR 12,838 crore YoY.
ONGC is a public sector enterprise established on 14 August 1956 and is the largest oil and gas exploring and producing company in India. Since its inception, the company has been involved in the exploration of conventional and non-conventional sources of energy. It has also ventured into natural gas production and is now exploring coal bed methane for its reserves.
The chairman of ONGC is Mr. Shashi Shankar who has been given the task to expand the company’s operations and look for fresh prospects. He has encouraged the company diversify and venture into new prospects to help the company grow. He has emphasized the need to ensure sustainability of ONGC and keep up with the changing dynamics of the industry. He has also established a dynamic environment for employees to ensure that business decisions are taken up swiftly.
