Following the Q3 results and ahead of Nirmala Sitharaman’s 2025 budget, the price of the Oil and Natural Gas Corporation (ONGC) share fell by almost 3% in Saturday morning trading.
Following the Q3 results and before Nirmala Sitharaman’s 2025 budget, the price of Oil and Natural Gas Corporation’s (ONGC) shares fell more than 3% in Saturday morning trading. The share price began at 260 on the BSE on Saturday, less than the previous close of 262.50. Following that, the cost of ONGC shares fell more than 3% to intraday lows of ₹253.80.
On Friday, the upstream oil and gas producers (ONGC) announced a 16.7% drop in their third-quarter net earnings. In the third quarter of the fiscal year 2025, ONGC’s standalone net profit was ₹8,240 crore, less than the ₹9,892 crore it made at the same period the year before. The drop in crude was the primary cause of the fall.
For crude oil produced from subterranean oil fields and the seabed, the corporation realized $72.57 per barrel during the October–December 2024 quarter, less than the $81.13 per barrel realized during the same period in 2023.
While gas prices remained unchanged at $6.50 per million British thermal units, overall income fell 3.1% to ₹33,771 crore due to the dip in crude prices. According to Jefferies India Pvt Ltd’s initial cut, the ONGC 3QFY25 is in line with output increasing sequentially.
With domestic output slightly ahead and realizations in line, Jefferies said that Q3 standalone earnings before interest tax, depreciation, and amortization, at about ₹18968 Crore, grew 11% year over year and 4% sequentially, coming in just ahead of Jefferies’ predictions. Due to increased tax rates, reduced dividend income, and more significant depreciation and amortization, net profit was 16% and 17% below Jefferies and Consensus forecasts. At over ₹8600 crore, the consolidated net profit was 37% lower due to the worse performance of its subsidiaries, HPCL and MRPL. Production in the KG basin increased to 35,000 barrels per day. The stock has more than 45% upside potential at Jefferies’ current target price of ₹375.
The second interim dividend of 100%, or ₹5.00, has been approved by the ONGC Board for each equity share with a face value of ₹5.00. According to the firm, the total settlement on this account would be RS 6,290 Crore.
February 7, 2025, has been set as the record date for dividend distribution. Earlier in November 2024, the first interim dividend of 120 percent, or ₹ 6.00 per share, was announced.
