ONGC benefited from the drastic fall in its subsidy bill, which the explorer forks out to compensate state-owned oil-marketing companies towards selling fuel below market cost.
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The company reported a net profit of Rs 775.42 crore during the quarter as compared to Rs 851.87 during the corresponding quarter last financial year (2014-15).
Oil & Natural Gas Corp.is seeking through its overseas unit to buy a stake in Russia’s second-largest oil producing development from OAO Rosneft, according to two people with direct knowledge of the plan. “But we have been able to arrest the decline in the previous quarter and in April-June it infact rose 2.2% to 5.227 million tonnes”, ONGC Chairman and Managing Director D K Sarraf said. “We are addressing that as well and hopefully you will have some positive news by the fourth quarter”, he said. Analysts polled by NDTV had estimated ONGC’s net profit at Rs 6,070 crore on sales of Rs 23,630 crore.
Upstream companies like ONGC bear part of the losses that retailers endure on promoting kerosene at authorities managed charges. While the rise in production played a bit role, lower crude price was the real contributor to the higher profit.
He said ONGC got a net of $58.92 per barrel in Q1 after giving a discount of $4.88 a barrel.
Net income for the company’s fiscal first quarter ended June 30 rose to 54.59 billion rupees ($839.59 million) from 47.82 billion rupees a year earlier.
ONGC had reported a net profit of Rs 4,782 crore on sales of Rs 21,813 crore in the corresponding quarter of past year.
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Revenue was up 4.3 per cent at Rs 22,868 crore throughout April-June 2015.
