Oil & Natural Gas Corp.’s quarterly profit rose meeting estimates on higher oil prices and other income.
Net profit of the oil explorer increased 596.6% over the year earlier to Rs 8763.7 crore in the quarter ended December, according to an exchange filing. That compares with the Rs 8,430.4-crore consensus estimate of analysts tracked by Bloomberg.
ONGC Q3 Key Highlights (YoY)
Revenue rose 67.3% to Rs 28,472.9 crore against the Rs 28,183.7-crore forecast.
Operating profit rose 128.2% to Rs 14,851.2 crore.
Other income rose 22.4% to Rs 1,491.6 crore.
Operating margin expanded to 52.2% from 38.2%.
A rise in crude oil and gas prices aided ONGC’s net oil realisation—the price an explorer earns after subsidies are deducted—in the third quarter. That came as Brent crude averaged $79.7 a barrel in the third quarter compared with $45.26 a year ago. The government had increased the domestic administered price of natural gas by 62% to $2.9 an mmBtu for the second half of FY22.
The ONGC board has declared second interim dividend of Rs 1.75 apiece per share with Feb.22 as the record date.
Shares of ONGC closed 0.6% lower before the results were announced compared with a 1.3% fall in the benchmark S&P BSE Sensex.