- 16 Aug 2022
- ICICIdirect Research
ONGC posts Q1FY23 numbersONGC - 149 Change: -3.40 (-2.23 %)
News: ONGC's revenue increased 22.7% QoQ to Rs 42320.7 crore in Q1FY23. Oil production was up 1.9% QoQ at 5.5 MMT while gas production increased 0.8% QoQ to 5.4 BCM. Oil realisation increased by 14.3% QoQ to US$ 108.5/bbl while gas realisation increased by 110% QoQ to US$ 6.1/mmbtu (on GCV basis). EBITDA was up 39.5% QoQ to Rs 25930.3 crore leading to PAT at Rs 15205.9 crore, up 71.6% QoQ.
View: Profitability was driven by higher oil and gas realisation. The movement in oil prices is important for ONGC's performance, going ahead. Domestic gas prices were revised upwards in semi-annual price revision in April and are likely to increase further in October 2022. Current trend in global oil & gas prices augurs well for ONGC. However, during the current quarter, the government has imposed windfall taxes on domestic oil production. This will reduce the overall realisation of the company. Additionally, continued low volume growth remains a key concern for the company and needs to be addressed in order to create value for shareholders.