ONGC June Quarter Profit Dips 21% To Rs 4,233 Crore

New Delhi: State-owned Oil and Natural Gas Corp (ONGC) on Wednesday reported a 21 per cent drop in June quarter net profit as oil prices slumped and its output fell.

Net profit at Rs 4,233 crore, or Rs 4.95 a share, in the quarter ended June 2016 was 21.14 per cent lower than Rs 5,368 crore, or Rs 6.27 per share, reported in the corresponding period a year ago, the company said in a statement.

ONGC got $46.10 for every barrel of crude oil it produced in the first quarter of current fiscal year as compared to a net realisation of $59.08 a barrel in the year-ago period. 

In rupee terms, ONGC got a 17.78 per cent lower price at Rs 3,085 per barrel in April-June this year as opposed to Rs 3,752 a barrel a year ago.

Also, the company got a 34.33 per cent lower gas price at $3.06 per million British thermal unit.

ONGC said the oil output dropped two per cent to 6.01 million tonnes while gas production was 5.55 per cent lower at 5.494 billion cubic metres.

It did not have to offer any fuel subsidy in the quarter. 

During April-June last financial year, ONGC had paid Rs 1,096 crore to help state-owned fuel retailers sell kerosene through PDS shops and cooking gas at government controlled rates.

Sales fell 21.41 per cent to Rs 17,784 crore. The company said it has made seven oil and gas discoveries during the quarter.

Oil and gas was found in an exploratory wells in the Golaghat district of Assam Arakan basin while a similar probe led to a gas discovery in South Dahej in Gujarat, it said.

In the NELP block CB-ONN-2001/1, oil was found at depth of 1,727 meters and another in Saurastra offshore block MB-OSN-2005/1 yielded a natural gas and condensate reserve, it added.