Wedoany.com Report-Aug. 15, Oil and Natural Gas Corp. (ONGC), a state-owned energy company based in New Delhi, India, reported a 10% year-on-year decrease in net income for the quarter ending June 30, reaching 80.24 billion rupees ($915 million), according to a stock exchange filing. This figure closely aligns with the 80.74 billion rupees forecasted by analysts in a Bloomberg survey. The decline was driven by lower crude oil prices and stagnant production from the company’s aging fields.

State-run Oil and Natural Gas Corp.'s quarterly profit declined.

As India’s leading oil and gas producer, ONGC is shifting its focus to reduce reliance on exploration by expanding into refining and liquefied natural gas. The company is investing 2 trillion rupees in new energy initiatives and emission reduction efforts to transform into an integrated energy provider. This strategic pivot aims to diversify its operations and enhance sustainability.

Unlike global counterparts such as Exxon Mobil Corp. and Chevron Corp., which offset lower crude prices with record production, ONGC’s output remained nearly flat. Oil production grew by only 1%, while gas production showed no change, primarily due to the natural decline in output from older fields. Quarterly revenue also fell 9.3% to 320 billion rupees. Earnings from crude oil dropped 20.4% to $66.13 per barrel, though gas earnings slightly increased by 2.2% to $6.64 per million British thermal units.

To address production challenges, ONGC is prioritizing recent discoveries and improving recovery rates from existing fields. Chairman Arun Kumar Singh stated in the company’s annual report: “To boost production, it will focus on recent discoveries and enhance recovery from aging fields.” Additionally, ONGC is collaborating with international companies, including BP Plc, ExxonMobil, and TotalEnergies SE, to share expertise and reduce risks in deepwater exploration projects.

ONGC accounts for approximately two-thirds of India’s oil production and over half of its gas output. The company’s efforts to modernize and diversify are expected to strengthen its position in the energy sector, with ongoing investments aimed at ensuring long-term growth and operational efficiency.