ONGC Posts Highest H1 Profit

SUBSCRIBE SEARCH ARTICLES NEWS The Indian state-owned company reported around $3.46 billion in net income for the first half of its 2027 financial year, up 82 percent from the same six-month period of the prior year as high realized oil and gas prices offset lower production. Image by Mrinal Pal via iStock

Oil and Natural Gas Corp Ltd (ONGC) on Thursday reported INR 325.22 billion (around $3.46 billion) in net income for the first half (H1) of its 2027 financial year, up 82 percent from the same six-month period of the prior year as high realized oil and gas prices offset lower production.

The figure for the April-September 2026 period is the Indian state-owned company's highest H1 net profit, it said in a press release. Quarterly net profit rose 57.3 percent year-on-year to INR 154.89 billion for Q2 FY2027.

ONGC declared a record interim dividend of INR 8 per INR 5 of shareholding. "The total payout on this account will be INR 10,064 crore [INR 100.64 billion] which is the highest-ever dividend paid in a single instalment", ONGC said.

H1 FY2027 production totaled 18.96 million metric tons (MMt), down from 19.58 MMt in H1 FY2026. Quarterly crude oil output fell year-over-year to 4.44 MMt. Quarterly natural gas production was 4.84 billion cubic meters (about 170.92 billion cubic feet), compared to 4.92 Bcm in Q2 H12026.

"The year-on-year moderation in quarterly production was primarily attributable to reservoir behavior complexities in KG-98/2 Asset in Eastern Offshore Basin, coupled with monsoon-related operational challenges and associated delays in PRP-8 and PRP-9 (Pipeline Replacement Projects)", ONGC said.

"Gas production from onshore fields was also affected by lower customer offtake during the quarter, following disruptions at certain major consumer facilities that temporarily reduced demand".

The lower production was offset by higher oil and gas prices.

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Crude realizations in Q2 FY2027 averaged $92.33 a barrel for production under the South Asian country's legacy "nomination" regime, up 37.1 percent year-on-year. Crude realizations for joint-venture production increased 41.9 percent to $97.02.

Realized prices for gas under the nomination regime averaged $7 per million British thermal units (MMBtu) in Q2 FY2027, up 3.7 percent year-on-year. The corresponding figure for new-well gas climbed 22.5 percent to $10.24 per MMBtu.

"During H1 FY'27, revenue from new-well gas stood at INR 7,050 crore and contributes more than 34 percent of total revenue from ONGC nomination gas portfolio in H1 F'27", ONGC noted.

Total revenue increased 38.9 percent year-on-year to INR 903.36 billion for H1 FY2027 and 32.8 percent to INR 438.75 billion for Q2 FY2027.

"ONGC awarded two major offshore development projects, MBOSN-2005-1, SD-4 & BS-17 and the additional development of Ratna-1 & NLM-14, involving a combined capital investment of approximately INR 11,800 crore", it said. "These projects are expected to unlock an estimated 22 MMtoe [million metric tons of oil equivalent] of hydrocarbon potential, strengthening future production from the Western Offshore region.

"ONGC also awarded the Pipeline Replacement Project-X (PRP-X), with an estimated project cost of over INR 4,300 crore, for the installation of new subsea pipelines and replacement of ageing pipeline infrastructure in the Western Offshore. The project is aimed at enhancing asset integrity, operational reliability and long-term production sustainability".

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