ONGC announces second interim dividend amidst Q3 FY’24 financial performance

In a significant financial update from the energy sector, Oil and Natural Gas Corporation (ONGC) has declared its consolidated net profit for the third quarter (Q3) of the fiscal year 2023-24, posting a figure of ₹10,748 Crore. This announcement came during ONGC’s 375th board meeting held on February 10, 2024, where it also declared a second interim dividend of ₹4.00 per share. This strategic financial maneuver underscores ONGC’s robust performance amid the dynamic energy market landscape.

The financial metrics reveal a nuanced picture of ONGC’s operations over the quarter. Despite a slight decrease in gross revenue and net profit compared to the previous year, with figures standing at ₹1,65,569 Crore and ₹10,748 Crore respectively, the company has managed to navigate through market volatilities with considerable success. Notably, the net profit attributable to owners saw a 9.9% decrease year-on-year, yet the company’s ability to sustain a substantial profit margin highlights its operational efficiency and strategic planning.

ONGC’s board has approved a significant payout to its shareholders, marking the second interim dividend at 80%, equating to ₹4.00 on each equity share of ₹5.00. This decision follows the first interim dividend of ₹5.75 per share declared earlier in November 2023, bringing the total payout to ₹5,032 Crore. The record date for the distribution of the dividend has been set for February 17, 2024, a move that signals ONGC’s commitment to delivering shareholder value.

ONGC’s production performance for Q3 FY’24, although slightly down due to operational challenges such as shutdowns for pipeline modernization and the impact of Cyclone Biparjoy, shows the company’s resilience.

The corporation has made notable strides in counteracting the natural decline from mature fields by implementing well interventions and advancing new drilling activities. Additionally, ONGC’s exploratory success, with nine discoveries in its operated acreages during FY 2023-24, underscores its expertise in enhancing India’s energy security.

ONGC has not only focused on its core operations but also embarked on several strategic initiatives aimed at sustainability and innovation. From the commencement of “First Oil” from the deepwater KG-DWN-98/2 Block to the launch of the state-of-the-art digital Corporate Visualization Center ‘ONGC DARPAN’, these moves highlight ONGC’s commitment to leveraging technology for operational excellence.

Furthermore, the formation of a 100% subsidiary company for green energy and gas business marks ONGC’s steps towards aligning with global sustainability trends.

ONGC’s Q3 FY’24 financial results and strategic initiatives reflect the company’s adaptability and forward-looking approach in navigating the complexities of the global energy market. The declaration of a substantial dividend amidst this financial performance demonstrates ONGC’s strong financial health and commitment to rewarding its shareholders. Moreover, its exploratory success and production performance, despite the challenges, illustrate ONGC’s technical prowess and strategic execution in maintaining its leadership position in the energy sector. As ONGC continues to innovate and expand its operations, its focus on sustainability and technological advancements will likely play a crucial role in shaping the future of energy in India and beyond.