New Delhi, Aug. 13: ONGC has posted a 19 per cent rise in net profit for the first quarter ended June at Rs 4,782 crore, overcoming higher subsidies and exploration-related write-offs.
Net profit stood at Rs 4,016 crore in the corresponding period of 2013-14.
During the quarter, ONGC had to pay a subsidy of Rs 13,200 crore to PSU refiners, including Indian Oil Corporation, compared with Rs 12,620 crore a year earlier.
The PSU, whose crude oil production was almost flat during the June quarter, had a net realisation of $47.51 per barrel against $40.33 a barrel a year ago.
The company has also not been able to increase oil and gas output from its Indian fields, some of which are as much as 40 years old.
Exploration-related write-offs on account of dry wells stood at Rs 3,827.5 crore, up 144 per cent from Rs 1,568.2 crore in the year-ago period. Depreciation and amortisation expenses rose 10 per cent to Rs 2,562.31 crore.
Tax expenses were Rs 2,570 crore, up 38.2 per cent from Rs 1,860 crore in the same quarter last year, while other income fell 25 per cent to Rs 895.2 crore.
ONGC’s gross realisation was $109.48 per barrel in the first quarter, up 6.23 per cent from $103.06 in April-June 2013. After paying subsidy, it got $47.51 a barrel. The subsidy discount was $62.33 per barrel against $62.73 last year.
The company said its net profit should have been higher by Rs 7,396 crore if he did not have to pay subsidies.
ONGC said its crude output was almost flat at 5.1 million tonnes, while gas production dipped 2.11 per cent to 5.775 billion cubic meters. Sales rose 13.12 percent to Rs 21,813 crore.
The company made six new oil and gas discoveries in the western offshore and KG basin.