India's ONGC reports 26% rise in profit in October-December
Indian state-owned energy company ONGC on February 14 reported a 26% year/year increase in net profit in the October-December quarter (Q3) owing to higher realised oil and gas prices.
ONGC’s profit came in at 110.45bn rupees ($1.33bn) compared with 87.64bn rupees in the same quarter of last year. The company’s revenue during Q3 was 385.84bn rupees, up 35.5% yr/yr. The company's realised oil price of $87.13/barrel, up 15.1% yr/yr. Its realised gas price in Q3 was $8.57/mn Btu, up 195.5% yr/yr.
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The Indian government October 1 hiked the regulated wholesale prices of locally produced natural gas by 40% to $8.57/mn Btu, up from $6.1/mn Btu in the April 1 to September 30, 2022 period. The prices of locally-produced gas are set every six months through a formula linked to global rates, which have risen sharply over the past year.
ONGC’s oil production in Q3 fell 1% yr/yr 5.3mn metric tons while gas output dropped 3.8% yr/yr to 5.35bn m3.
“Uncertainties and constraints across the global supply chain due to the Russia-Ukraine conflict have adversely affected the production of crude oil and gas,” ONGC said. “Significant peaks in energy prices, political stands of different nations in the aforementioned matter have significantly impacted energy productivity, affordability, and cost inflation, besides the lingering aftermath of the restrictive conditions due to the COVID pandemic.”