ONGC Shares Gain As Strong Q4 Profit Defies Analyst Expectations

  • Benzinga India
  • Stock Market News
ONGC Shares Gain As Strong Q4 Profit Defies Analyst Expectations
Credit: © Reuters.

Benzinga - Shares of state-owned oil explorer Oil and Natural Gas Corporation (NS: ONGC ) were gaining on Tuesday after the firm posted a strong jump in fourth-quarter earnings that went against analyst expectations.

What Happened: ONGC reported a 78% growth in consolidated net profit for the fourth quarter to ₹11,526.53 crore, up from ₹6,478.23 crore in the same period last year..

Revenue from operations for the fourth quarter rose marginally to ₹1.66 lakh crore, compared to ₹1.64 lakh crore in the same period the previous year.

Analysts had expected ONGC's net profit to fall by over 11% year on year to ₹8,434 crore, with Q4 revenue anticipated to decline slightly by 1.11% to ₹34,404 crore. They also predicted a half-percent drop in EBITDA to ₹17,251 crore, citing lower administered price mechanism (APM) gas prices and reduced oil and gas production, partly offset by higher crude oil realisation.

However, crude oil price realisation from ONGC's nominated fields was $80.81 per barrel for Q4, up from $77.12 per barrel the previous year.

The company’s board has recommended a final dividend of ₹2.50 per equity share for the financial year 2024, pending shareholder approval.

EBITDA for Q4 increased to ₹25,772 crore from ₹15,752 crore in the corresponding period last year.

ONGC's fourth-quarter total crude oil production increased 2.4% to 5.36 million metric tonnes, though total oil production for FY24 declined by 1.6%. Gas production decreased 3% to 5.1 billion cubic meters.

Price Action: ONGC’s share price was up 0.54% at ₹280.50 near the start of trade on Tuesday.

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