Oil and Natural Gas Corporation (ONGC) reported a standalone net profit of ₹35,610 crore for the financial year 2024–25 (FY25), reflecting a 12.1% decline from ₹40,526 crore in the previous year. The fall in profits comes even as the company maintained stable revenue and ramped up capital investments.
Revenue Holds Steady
According to ONGC’s official release dated 21 May 2025, standalone gross revenue remained largely flat at ₹1,37,846 crore, compared to ₹1,38,402 crore in FY24. On a consolidated basis, the company reported a net profit of ₹38,329 crore, with gross revenue touching ₹6,63,262 crore—marking a 1.5% increase year-on-year.
Mixed Production Metrics: Oil Up, Gas Down
Crude oil production saw a slight 0.9% increase to 18.558 million metric tonnes (MMT). However, standalone natural gas output slipped marginally to 19.654 billion cubic metres (BCM). ONGC Videsh, the company’s overseas subsidiary, delivered a 1.2% rise in crude oil output at 7.265 MMT. Its gas output, however, declined due to lower production from the Vietnam block.
Realisation Dips Amid Softer Oil Prices
The net realisation from nominated crude oil dropped to $76.90 per barrel, down 4.8% from the previous year. The decline mirrors a broader trend of weakening global oil prices during the fiscal year.
Sharp Rise in Capital Expenditure Signals Growth Focus
Demonstrating its forward-looking approach, ONGC significantly boosted capital spending, investing approximately ₹62,000 crore in FY25—up from ₹37,494 crore in FY24. Notably, ₹10,300 crore was allocated to exploration activities alone, representing a 25% year-on-year increase.
Record Drilling Activity and New Discoveries
FY25 marked a high point in ONGC’s drilling operations. The company drilled a total of 578 wells—comprising 109 exploratory and 469 development wells—the highest number in 35 years. ONGC also announced nine new hydrocarbon discoveries, monetising eight of them during the year. This underlines the company’s intensified focus on exploration and resource development.
Key Discoveries Across Strategic Basins
Among the notable finds were:
- Yandapalli-1 in the Krishna-Godavari (KG) Basin
- Suryamani and Vajramani prospects in the Mumbai Offshore region
- A new pool discovery in the Mukta Formation
These additions strengthen ONGC’s resource base and reinforce its position as a leading upstream energy company.
Looking Ahead
As reported by etenergyworld.com, while FY25 presented challenges with declining profits and fluctuating energy prices, ONGC’s aggressive capital deployment, increased drilling activity, and new discoveries highlight a strategic pivot towards long-term growth and energy security.
