The Oil and Natural Gas Corporation (ONGC) is likely to report a fall in net profit for the quarter ended March 2024 as analysts expect limited net realisation from oil and gas, and flattish sales volume. The company will report its Q4FY24 earnings on May 20.
The upstream oil company’s net profit is seen falling over 11 percent year-on-year to Rs 8,434 crore, according to the average of 8 analysts estimates surveyed by Moneycontrol. The decline in profit after tax (PAT) is expected to be on account of lower oil and gas production and a lower administered price mechanism for gas.
The company’s Q4 revenue is expected to decline marginally by 1.11 percent to Rs 34,404 crore. Meanwhile, EBITDA is seen falling half a percent YoY to Rs 17,251 crore on lower administered price mechanism (APM) gas price and lower oil and gas production by ONGC but partially offset by higher crude oil realisation.
Sales volume estimates
Motilal Oswal expects oil realization (before windfall tax) to expand 5 percent YoY for ONGC, in line with Brent movement in Q4FY24. Oil sales volumes are seen rising 4 percent on-year, but gas sales volumes are expected to decline 2 percent YoY. The sales of Value Added Products (VAP) are also seen declining 4 percent YoY.
