ONGC Q1 Net Rises 14% to Rs. 5460 Crore, Lags Estimate

The company posted a net pofit of Rs 6,436 crore during the June quarter as compared to Rs 2,522 crore during the corresponding quarter last fiscal.

India’s top energy explorer Oil and Natural Gas Corp could spend up to $7 billion to develop its block off the country’s east coast and expects to begin gas production there in 2018, its chairman said on Thursday.

At a time when globally oil producers see their revenue skidding on lower crude prices and are cutting back on capex plans, India’s Oil and Natural Gas Corporation on Thursday presented a completely opposite story by posting a 14% jump in its June quarter net. “We are addressing that as well and hopefully you will have some positive news by the fourth quarter”, he said. In Q1 FY16, subsidy burden stood at Rs 1,133 crore way below of Rs 13,200 crore in the same period previous year.

ONGC said that the impact on its profits in the quarter in question, of the under-recovery, or loss, on account of selling “crude oil, public distribution system (PDS) kerosene and domestic LPG” below cost, has been to the tune of Rs. While the rise in production played a bit role, lower crude price was the real contributor to the higher profit.

That also helped the company improve net realisation, or earnings per barrel of crude, to $58.92 from $47.15 a barrel a year ago. Sales during April-June slipped 19 percent to 101,307 crores versus 124,957 crores, the company said in a release to the exchanges.

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.