ONGC net dips 17% to Rs.5,563 cr as output falls

Net profit at R5,563 crore during October-December, 2012-13 was lower than R6,741 crore in the year-ago period, ONGC chairman and managing director Sudhir Vasudeva told reporters here.

Vasudeva said the profit in Q3 last year was higher due to R3,142 crore one-time exceptional income from cost recovery being allowed on royalty it paid on Cairn India’s Rajasthan oil block.

The benefit of the decision came for the full-year in that quarter and if this exceptional item was excluded, the quarter-on-quarter net profit should have been higher by R736 crore, he said. Also, ONGC’s share in fuel subsidy was marginally lower at R12,433 crore, against R12,536 crore in October-December 2011-12.

Upstream firms like ONGC bear a portion of the losses retailers incur on selling diesel, domestic LPG and kerosene at government controlled rates. This they do by selling crude oil at discount to the refiners.

ONGC realised $47.97 per barrel after paying a discount out of $110.16 a barrel gross realisation. The net realisation was higher than $44.71 a barrel realised in Q3 last year.

Vasudeva said the “net profit would have been higher by R7,260 crore if we were not to foot the subsidy bill”.

ONGC produced 6.05 million tonne of crude oil in the third quarter, 3.02% lower than 6.244 MT output a year ago. Gas sales was almost unchanged at 5,026 million standard cubic meters while production of value

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