India's ONGC Posts 26% Rise In Q3 Profit On Higher Crude, Gas Prices

India’s top oil explorer Oil and Natural Gas Corporation reported a 26% rise in its third-quarter profit, helped by higher crude and gas prices.

The state-run company’s profit came in at 110.45 billion rupees ($1.33 billion) for the quarter ended Dec. 31 compared to 87.64 billion rupees a year earlier.

India in September raised the price of locally produced gas by 40% to a record $8.57 per million metric British thermal units (mmBtu). The gas prices nearly tripled from a year ago.

The crude oil realisation per barrel was up 15.1% at $87.13 compared to $75.73 a year earlier, while the realisation as per joint venture was up 12.2% at $84.99.

Demand for crude and natural gas remained higher as economic activity picked up post-pandemic, driving revenue from operations up 35.5% to 385.83 billion rupees.

However, total crude oil production fell 1% to 5.396 million metric tonnes (MMT) while total gas production dropped 3.8% from a year earlier, the company said in an exchange filing.

"Uncertainties and constraints across the global supply chain due to the Russia-Ukraine conflict have adversely affected the production of crude oil and gas," the company said.

Oil India Ltd, another state-run oil explorer also reported a better-than-expected jump in third-quarter profit last week, helped by increased production and better price realisation.