Mint Explainer: How did ONGC double its consolidated net profit in Q1?

livemint.com:

₹17,383 crore, despite gross revenue falling 10.4% to ₹1.63 lakh crore. Here’s a look at how the public-sector energy giant increased its profits. Its revenue from operations during the period under review was ₹1.63 lakh crore, compared to ₹1.82 lakh crore a year ago.

Revenues declined because of the fall in crude prices over the past year. Its net realisation from nominated fields declined 29.5% during the quarter to $76.49 a barrel, from $108.55 a barrel in April-June 2022. Further, the realisation of its joint ventures dropped from $109.60 to $70.64 a barrel.

ONGC’s consolidated profit surged despite a decline in its revenue due to a 16.9% decrease in its expenses. Total expenses during the first three months of FY24 stood at ₹1.43 trillion, compared to ₹1.72 trillion in FY23. Total crude oil production declined 3.3% on-year to 5.311 million metric tonnes during the June quarter.

The company said this was because it had to shut down the Panna-Mukta offshore platform to commission a new crude oil pipeline and modernize its evacuation facilities, and because of the disruption caused by Cyclone Biparjoy in June. "Crude oil wells in southern India had to be stopped as a refinery there stopped receiving oil following a leakage in their pipeline," it said in a statement. ONGC said it is implementing well interventions and advancing new well drilling activities to counter the decline in production from some mature and marginal fields.