ONGC net falls 21% in first quar­ter on lower crude price

Resource Digest - - CONTENT -

Pub­lic sec­tor hy­dro­car­bon ex­plorer and pro­ducer Oil and Nat­u­ral Gas Cor­po­ra­tion ( ONGC) Ltd has re­ported a 21.14 per cent fall in net profit for the first quar­ter of 2016- 17, pri­mar­ily on ac­count of lower crude oil prices. The com­pany’s net profit for the quar­ter stood at Rs 4,233 crore against Rs. 5,368 crore in the same quar­ter last year.

Dur­ing the quar­ter, the com­pany’s gross rev­enue also fell 21.41 per cent to Rs 17,784 crore against Rs 22,628 crore in the same quar­ter last year.

The com­pany said in a state­ment that the net price re­al­i­sa­tion for crude oil dur­ing the quar­ter fell 21.97 per cent to $ 46.10 per bar­rel against $ 59.08 per bar­rel in the same quar­ter last year. This is de­spite the com­pany giv­ing a dis­count to pub­lic sec­tor oil mar­ket­ing firms for crude oil in the same quar­ter last year.

Typ­i­cally, pub­lic sec­tor oil ex­plo­ration and pro­duc­tion com­pa­nies sell crude oil at a dis­count to pub­lic sec­tor oil mar­ket­ing com­pa­nies to com­pen­sate for sen­si­tive re­fined prod­ucts such as kerosene and do­mes­tic LPG be­ing sold at less than mar­ket rates. Dur­ing the quar­ter un­der re­view, ONGC did not have to give any dis­count.

HY­DRO­CAR­BON PRO­DUC­TION

Apart from lower crude oil prices, ONGC’S pro­duc­tion of the hy­dro­car­bon was also marginally lower. The com­pany pro­duced 6.012 mil­lion tonnes of crude oil dur­ing the quar­ter, which was 2.02 per cent lower than 6.136 mil­lion tonnes in the same quar­ter last year.

ONGC’S to­tal nat­u­ral gas pro­duc­tion dur­ing the quar­ter was 5.55 per cent lower at 5.494 bil­lion cu­bic me­tre as com­pared to 5.817 bil­lion cu­bic me­tre in the same quar­ter last year.

SEVEN DIS­COV­ER­IES

Mean­while, the com­pany said in a state­ment that it has no­ti­fied seven dis­cov­er­ies in the first quar­ter of fis­cal 2016- 17. Th­ese are in As­sam, Cam­bay, Mum­bai Off­shore and the KG On­land basin in Andhra Pradesh.

The com­pany’s shares closed 2.51 per cent higher on the BSE at Rs. 245.10.

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