ONGC Q1 net profit drops 10% to Rs 8,024 cr on lower oil prices

New Delhi: State-owned Oil and Natural Gas Corporation (ONGC) has reported a 10 per cent decline in its June quarter net profit on lower oil prices and stagnant production from its aging fields.

The company reported a net profit of Rs 8,024 crore in the first quarter of 2025-26 fiscal year, compared to Rs 8,938 crore earning in the same period last year, a company statement said.

The firm realised USD 67.87 for every barrel of crude oil it pumped out of ground and below seabed from sale to refiners, who convert it into fuels like petrol and diesel, as compared to USD 80.64 per barrel realisation in April-June 2024.

Price of natural gas, which is used to generate electricity, produce fertiliser or turned into CNG and piped cooking gas, marginally rose to USD 6.64 per million British thermal units in Q1 from USD 6.5 in last year.

ONGC said gas from new wells it drills is eligible for a 20 per cent premium over the government set price, called APM.

"ONGC is actively working to boost output from such wells. In Q1 of 2025-26 (FY’26), revenue from new well gas stood at Rs 1,703 crore, delivering an additional Rs 333 crore compared to the APM gas price," the statement said.

The company produced 4.683 million tonnes of crude oil in Q1, almost the same as last year's 4.629 million tonnes. Gas output too was almost unchanged at 4.846 billion cubic meters in the quarter.

During the quarter, the firm made two discoveries of hydrocarbons in the Mumbai offshore.

Other highlights of the quarter included commencement of production from the PY-3 field -- a joint venture of ONGC, Hardy Exploration & Production (India) Inc, and Invenire Petrodyne Ltd located offshore in the Cauvery Basin on the east coast of India. The field is producing 4,000 barrels of oil per day and 88,000 standard cubic meters a day of gas.

Also, North Karanpura CBM block was put on production.

"ONGC commenced the supply of treated natural gas from its newly established gas treatment facility at Palatana, Tripura on June 9. 2025. The gas is being supplied to the city gas distribution (CGD) network in the Gomati through GAIL, enhancing the region's access to cleaner fuel," the statement said.

The firm said it has got special dispensation from the Ministry of Petroleum and Natural Gas for selling gas to Rajasthan Rajya Vidyut Utpadan Nigam Ltd (RRVUNL) at USD 6.5 per mmBtu from Jodhpur. RRVUNL conveyed their consent for offtake of around 0.1 million standard cubic meters per day of gas using the existing GAIL gas pipeline.

ONGC and its overseas subsidiary, ONGC Videsh signed an MOU for coordinated marketing functions. "This MoU is the first step towards enhancing operational synergy and optimizing marketing efficiencies for ONGC and its group companies."