New Delhi: State-owned explorer ONGC Ltd has posted a 58 per cent rise in quarterly net profit at Rs 6,143.88 crore, its highest in over four-and-a-half-years because of a surge in crude prices and increased gas production.
ONGC's net profit in the first quarter of 2018-19 was 58.1 per cent higher than the profit of Rs 3,884.73 crore in the year-ago period. The net profit is the highest since December 2013 when earnings had hit Rs 7,126 crore.
ONGC realised $71.48 for every barrel of crude oil it produced in the April-June quarter of the current fiscal, up 47.6 per cent over $48.42 a barrel in the year-ago period.
For natural gas, it got $3.06 per million British thermal unit (mBtu) compared with $2.48 per mBtu a year ago.
Crude oil production dropped 5.3 per cent to 5 million tonnes in the quarter. This was partly made up by a 2.5 per cent rise in output from joint venture fields, which pumped 0.8 million tonnes. Natural gas production was, however, 3.4 per cent higher at 5.9 billion cubic metres.
Revenue from operations rose 42.7 per cent to Rs 27,212.83 crore for the quarter under review.
Tax tiff
The country's largest oil and gas producer said it deposited Rs 2,695 crore service tax and GST under protest as it believes such taxes are not applicable on royalty paid by it to the government.
"Based on legal opinion obtained by the company, service tax/GST on royalty is not applicable. The company is contesting the same at appropriate levels and accordingly the same is considered as a contingent liability. However, as an abundant caution, the company has deposited service tax, GST, and interest under protest amounting to Rs 2,695 crore," ONGC said.
Oil producers are required to pay royalty on which the tax authorities are demanding service tax.