The company’s Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter declined by 2% from last year to ₹18,657 crore, which also turned out to be higher than then CNBC-TV18 poll estimate of ₹17,001 crore.
Net profit for the period increased by 24% from the March quarter to ₹8,024 crore, higher than the poll estimate of ₹7,851 crore.
Crude production during the quarter remained flat both when compared to last year and the previous quarter at 5.24 million metric tonnes. The figure was in-line with expectations.Average daily production for ONGC stood at 4.22 lakh barrels per day, which is down 1% from the March quarter, adjusting for one extra day during the quarter. This decline comes after production increased for two quarters in a row.
Gas production for the June quarter stood at 4.96 billion cubic meters, a decline of 1% both year-on-year, as well as sequentially. Gross Crude Realisations stood at $66 per barrel, which is in-line with expectations.
Brokerage firm Jefferies has maintained its “buy” recommendation on ONGC with a price target of ₹360, which implies a potential upside of 53% from current levels.
Shares of ONGC ended 0.7% higher on Tuesday ahead of the results announcement at ₹235.37. The stock is down 4% in the last one month.
