ONGC achieves record profits in FY24 – Company declares highest ever total dividend!

Financial Performance

In FY24, ONGC recorded its highest-ever standalone net profit of Rs 40,526 crore, marking a modest increase of 1.1% from Rs 40,097 crore in FY23. Consolidated net profit reached an unprecedented Rs 57,101 crore, surging by 67.7% from Rs 34,046 crore in the previous year. Gross revenue for the year stood at Rs 6,43,037 crore, a decline of 6.1% from Rs 6,84,829 crore in FY23, reflecting challenging market conditions.

For Q4FY24, Consolidated Gross Revenue stood at Rs 1,66,771 crore, up 1.6% from Rs 1,64,067 crore in Q4FY23. Net profit rose by unprecedented Rs 11,527, surging by 77.9% from Rs 6,478 crore same quarter previous year.

ONGC declared the highest-ever total dividend of Rs 15,411 crore for FY24. This includes an interim dividend of 195% (Rs 9.75 per share) and a final dividend of 50% (Rs 2.50 per share), totalling a 245% payout.

Crude Oil and Gas Production

The company saw a 2.4% quarter-on-quarter increase in crude oil production in Q4 FY24, with total production reaching 5.359 million metric tonnes (MMT). For the entire fiscal year, ONGC’s crude oil production was 21.139 MMT, a slight decrease of 1.6% from 21.485 MMT in FY23. Gas production for FY24 was 20.648 billion cubic meters (BCM), a decrease of 3.3% from 21.351 BCM in the previous year.

Discoveries and Exploration

In FY24, ONGC made 11 new discoveries, including six onshore and five offshore. Notably, seven of these discoveries were monetized within the fiscal year. Significant finds include the East Lakhibari-6 in the A&AA Basin and West Amod-1 in the Cambay Basin, both of which have opened new prospects for future exploration. Additionally, the exploratory well Ranaghat in the Bengal Onland and Neelmani in Mumbai Offshore demonstrated substantial hydrocarbon potential.

ONGC achieved its highest drilling record in 34 years, with 541 wells drilled in FY24, surpassing the previous high of 461 wells in FY23. This comprised 103 exploratory and 438 development wells, underlining ONGC’s commitment to expanding its resource base.

Capital Expenditure

The company invested around Rs 37,000 crore in capital expenditure (CAPEX) in FY24, achieving its highest-ever CAPEX utilization. This investment underscores ONGC’s strategic focus on strengthening its growth prospects and operational capabilities.

ONGC Group of Companies

ONGC’s subsidiaries and joint ventures also demonstrated robust performance. ONGC Videsh Ltd recorded a production of 10.518 MMTOE, a 3.4% increase from 10.171 MMTOE in FY23. Hindustan Petroleum Corporation Ltd (HPCL) processed a record 22.33 MMT of crude, achieving a 17% increase in throughput. Mangalore Refinery and Petrochemicals Ltd (MRPL) reported a net profit of Rs 3,596 crore, up from Rs 2,638 crore in FY23.

Strategic Initiatives and Collaborations

The company entered a joint venture agreement with NTPC Green Energy Ltd to develop renewable energy projects focusing on offshore wind. Additionally, ONGC signed a cooperation agreement with TotalEnergies for methane emissions detection and measurement campaigns, reflecting its commitment to sustainability and environmental responsibility.

Conclusion

ONGC’s performance in FY24 has been marked by record financial achievements, strategic discoveries, and significant investments in exploration and development. The company’s highest-ever net profits and dividend payouts reflect its robust operational strategies and commitment to growth. ONGC’s focus on sustainable energy and collaborative ventures positions it well for future success, ensuring continued value creation for stakeholders. The achievements in FY24 underscore ONGC’s resilience and strategic foresight in navigating market challenges and capitalizing on growth opportunities.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.