ONGC’s Q2FY24 Ebitda of Rs 18,400 crore experienced a 6% q-o-q decline, landing 8% below our estimate. This decrease can be attributed to slightly lower-than-anticipated volumes, elevated other expenses, and statutory levies. On the positive side, DD&A (depreciation, depletion and amortisation) costs of Rs 6,000 crore dropped by 11% q-o-q, surpassing estimates by 13%. This was due to a significant reduction in survey expenses and the reversal of expenses related to dry wells, albeit offset to some extent by an increase in impairment losses, rising from Rs 500 crore in Q1FY25 to Rs 900 crore.
