ONGC Q2 net down 32% at R5,897 cr on subsidy costs
The company paid subsidy to the tune of R12,330 crore for the second quarter of 2012-13 compared with R5,713 crore during the corresponding period last year, an increase of around 116%. This impacted the profit after tax to the tune of R7,103 crore. The half yearly subsidy payout stands at R24,676 crore for 2012-13.
Sudhir Vasudeva, chairman ONGC, said, “The higher subsidy payout is a matter of concern. We have taken up the matter with the Cabinet Secretariat and also with Prime Minister.”
The net-realisation of the company from sale of crude oil stands at $46.80/bbl during the second quarter compared with $82.62/bbl, a variation of $43.4/bbl. The management said that the company should attain a net realisation of $56/bbl to fund its capex plans.
“If we continue to pay higher subsidy, our cash reserve, which at starting of the fiscal was R12,000 crore would drop to nearly R4,500 crore by end of the fiscal. It is a myth that ONGC is sitting up with huge cash,” Vasudeva added.
The company plans
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