ONGC Needs a Faster Ramp-Up

Oil & Natural Gas Corp. (ONGC) reported a standalone EBITDA of ₹19,000 crore for the March quarter (Q4FY25), up 9% year-on-year, despite lower aggregate realization, thanks to higher sales volumes and lower statutory levies.

- Ashish Agrawal

However, an over fourfold increase in dry well write-offs caused ONGC's net profit to drop as much as 35%.

In comparison, Q4 revenue was flattish, up at about 1% year-on-year to ₹35,000 crore, with sales volume rising marginally by about 2%. Gross oil realization fell 9% to $73.7 per barrel, while average gas realization was up 6%. The higher gas price can be attributed to the rising share of new wells gas (NWG) that fetched $9.2 per mBtu (million British thermal units) last quarter versus $6.5 for the rest. NWG forms about 20% of ONGC's gas mix and is expected to grow by 10-15% over the next 5-6 years.