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ONGC Reports Record Highest Net Profit of INR 40,526 Crore in FY24

Oil and Natural Gas Corporation (ONGC) announced its highest-ever standalone net profit of Rs 40,526 crore for the fiscal year 2023-24 (FY24) on Monday. The energy giant’s consolidated net profit also reached a new peak of Rs 57,101 crore, cementing its position as a leader in the energy sector. Despite facing a decline in gross revenue, ONGC’s robust financial performance was driven by a surge in crude oil production and strategic investments.

In its latest stock exchange filing, ONGC revealed that its standalone gross revenue for FY24 stood at Rs 1,38,402 crore, marking an 11 percent decline from the previous fiscal year’s revenue of Rs 1,55,517 crore. This decrease in revenue was overshadowed by the company’s remarkable profit margins, which reflect its operational efficiency and strategic market positioning.

ONGC’s Board of Directors announced a total dividend of Rs 12.25 per share for FY24, translating to a total payout of Rs 15,411 crore. This dividend includes an interim dividend of Rs 9.75 per share that was distributed during the year. Additionally, a final dividend of Rs 2.50 per share has been recommended for approval. The significant dividend payout underscores ONGC’s commitment to delivering value to its shareholders.

The company’s shares have experienced a substantial rise of over 46 percent in the past six months on the National Stock Exchange (NSE), trading at Rs 279 at the time of the report. This stock performance reflects investor confidence in ONGC’s financial health and future prospects.

 

Crude Oil Production and Capital Expenditure

ONGC reported a notable increase in crude oil production, which saw a 2.4 percent rise on a quarterly basis, reaching 5.359 million metric tonnes (MMT) in the fourth quarter of FY24. This upturn in production is a positive indicator of ONGC’s operational capabilities and its ability to enhance output despite global challenges in the energy sector.

The company’s capital expenditure in FY24 was significantly higher than the previous fiscal year, amounting to Rs 37,000 crore compared to Rs 30,208 crore in FY23. This substantial investment reflects ONGC’s strategic focus on expanding its production capacity, modernizing its infrastructure, and exploring new opportunities in the energy market.

CEO Subhash Kumar expressed optimism about the company’s future growth, stating, “Our increased capital expenditure and strategic initiatives are aimed at strengthening ONGC’s production capabilities and securing our position in the global energy market. We are committed to sustainable growth and delivering long-term value to our stakeholders.”

 

Strategic Initiatives and Future Outlook

As part of its strategic initiatives, ONGC has been focusing on enhancing its exploration and production capabilities. The company has been investing in advanced technologies and innovative methods to increase its hydrocarbon reserves and improve recovery rates. Additionally, ONGC is actively exploring opportunities in renewable energy as part of its long-term sustainability strategy.

The company’s investments in renewable energy projects, including wind and solar power, are aimed at diversifying its energy portfolio and reducing its carbon footprint. These initiatives align with global trends towards sustainable energy practices and reflect ONGC’s commitment to environmental stewardship.

Also, ONGC plans to continue its focus on increasing production efficiency and expanding its presence in international markets. The company is exploring strategic partnerships and collaborations to enhance its global footprint and leverage new opportunities in the energy sector.

Despite the challenges posed by fluctuating global oil prices and geopolitical uncertainties, ONGC remains resilient. Moreover, the company stays focused on achieving its growth objectives. The company’s robust financial performance in FY24 is a testament to its strategic vision and operational excellence.

ONGC’s record-breaking net profit and strategic investments highlight its strong position in the energy sector. With a clear focus on growth, innovation, and sustainability, ONGC is well-positioned to navigate the evolving energy landscape and deliver long-term value to its shareholders and stakeholders.

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