ONGC Q2 net profit down 32%, biggest in 4 years

ONGC may have to draw about Rs 8,000-8,500 crore this fiscal from its cash reserves of Rs 12,500 crore, he said. "It is a myth that we are sitting on a huge cash pile. Our subsidiaries ONGC Videsh and Mangalore Refinery do not generate that kind of cash to meet capital requirement which is met from ONGC's cash accruals."

"We need in excess of USD 60 per barrel to sustain our capital expenditure," he said adding rise in subsidy payout in Q2 dented ONGC's profit by Rs 7,103 crore.

The company's sales fell by 12.5 per cent to Rs 19,853 crore. Crude oil production fell 4.6 per cent to 6.527 million tons while gas ouput was down by a marginal 0.5 per cent to 6.359 billion cubic metres.

Vasudeva said ONGC's crude oil production is likely to rise to 29.1 million tonnes next fiscal from current year target of 27.002 million tonnes. Similarly, gas output is to rise to 26.45 million tonnes in 2013-14 from 25.73 million tonnes in current year.

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