ONGC posted a truly dismal set of earnings for Q1FY21, reflecting the direct impact of the falling crude oil prices and slowdown in demand.

The PSU ended the quarter with a 82% (YoY) decline in consolidated net profit at Rs.2012 crore. This was on a 43% drop in gross revenue at Rs.62,496 crore.

Overall fall in realisations impacted the earnings - net realisation of crude from nominated fields for the April to June period was down 57% at $28.72/barrel v/s $66.32/barrel (YoY). Even its crude price realisation from JVs fell 56% to $29.6/barrel.

The company said that earnings have been impacted by lower crude price realization in the wake of COVID-19 fall out on global oil and gas industry as a direct consequence of adverse price movements in global crude prices. Lower gas prices also contributed to lower topline and bottomline – it fell 35% to $2.39/mmbtu v/s $3.69/mmbtu (YoY).

ONGC has notified three discoveries (two pools and one prospect), taking the total discoveries to six in FY 2020-21 so far.

The market seems to have already discounted for this disappointing earnings as the stock opened in the green over 2% at Rs.81 and going up further to Rs.81.70. Its remains in the green around the same levels as of now.