ONGC Q3 net dips 6.4%

Font Size

Print

Feedback

Email

Discuss

Related Articles

UHBVN releases 13,699 new connectionsPowergrid to set up 70,000 kms transmission systemWB funding for energy projects rise 87%WB funding for energy projects rise 87%

Oil and Natural Gas Corp on Monday reported a 6.4 per cent drop in net profit in the third quarter of this fiscal as its subsidy payout to state-run oil marketing firms nearly tripled during the period.

The company posted a net profit of Rs 4,367 crore despite selling crude oil at record 91.19 dollars a barrel price in October-December quarter, ONGC Chairman and Managing Director R S Sharma told reporters in New Delhi.

“We paid Rs 6,080 crore toward subsidising petrol, diesel, domestic LPG and PDS kerosene in October-December as against Rs 2,204 crore a year ago,” he said.

This is a jump of almost 175 per cent. After subsidy, ONGC’s net realisation in dollar terms was 54.52 dollars a barrel, which after factoring in the 12.23 per cent rise in rupee the net realisation slipped to Rs 2,151 per barrel from Rs 2,288 dollars a barrel in October-December 2006.

In October-December 2006, when ONGC got 50.87 dollars a barrel after giving subsidy payout of 11.27 dollars a barrel, one US dollar was equal to 44.97 rupees, which now is 39.47.

Sales during the third quarter were down 2.6 per cent to Rs 15,218 crore, he said. Sales during the first nine months of 2007-08 were almost unchanged at Rs 44,409 crore.

In April-December, ONGC posted a 8.6 per cent rise in net profit to Rs 14,075 crore after subsidy payout of Rs 13,528 crore. It realised 53.69 dollars a barrel after paying out 26.68 dollars per barrel toward subsidies. But after factoring in rupee appreciation, it got Rs 2,170 a barrel as against Rs 2,147 per barrel a year ago.

Sharma said ONGC was being made to pay royalty on crude oil produced to states at gross realisation and in effect, it should be calculated at price realised after subsidy payout.