ONGC reports 35% decline in Q4 net profit as oil and gas prices weaken

State-owned Oil and Natural Gas Corporation (ONGC) has reported a 35% decline in net profit for the fourth quarter of FY25, citing lower crude oil and natural gas prices as the primary reason for the downturn. The company’s net profit stood at ₹6,448 crore, down from ₹9,869 crore in the same period last year.

Despite the profit decline, ONGC’s revenue saw a marginal increase of 1%, reaching ₹34,982 crore in Q4FY25. The company’s crude oil production remained nearly static, with 4.7 million tonnes produced in the quarter, compared to 4.714 million tonnes in Q4FY24. Similarly, natural gas production dipped slightly to 4.893 billion cubic meters (BCM) from 4.951 BCM in the previous year.

The decline in profit was largely attributed to lower crude oil price realization, which fell to $73.72 per barrel, down from $80.81 per barrel a year ago. Gas prices, however, remained unchanged at $6.5 per million British thermal unit (mmbtu).

For the full fiscal year FY25, ONGC’s net profit dropped 12% to ₹35,610 crore, while revenue remained largely unchanged at ₹1.37 lakh crore. The company invested ₹62,000 crore in capital expenditure, including ₹18,365 crore in OPaL and ₹4,600 crore in ONGC Green Ltd for renewable energy acquisitions.

ONGC drilled 578 wells, marking the highest drilling activity in 35 years, with 109 exploratory wells and 469 development wells. The company continues to focus on expanding its exploration efforts, particularly in offshore regions, to enhance future production capabilities.

Despite the profit decline, ONGC remains optimistic about long-term growth, with plans to increase exploration activities and strengthen its renewable energy portfolio.