ONGC profit rises 58% in Q1 to Rs 61.4 bn on higher net realisation

ONGC gross revenue for the period under review was seen 43% up at Rs 272.13 bn, as against Rs 190.73 bn

State-run Oil and Natural Gas Corporation, ONGC has posted a 58 per cent increase in net profit during the first quarter of the financial year 2018-19 to Rs 61.44 billion, compared to Rs 38.85 billion on the back of higher net realisation owing to rise in prices.

Meanwhile, the company’s gross revenue for the period under review was seen 43 per cent up at Rs 272.13 billion, as against Rs 190.73 billion. The company’s net realisation on crude oil for the April to June quarter of the current financial year was seen at $71.48 a barrel, compared to $48.42 a barrel during the same time in 2017-18. Interestingly, net realisation for crude oil from joint ventures also zoomed 48 per cent from $45.92 a barrel to $67.97 a barrel during the first quarter of 2018-19.   

However, the total crude oil production has seen a drop of 3.5 per cent for the quarter to 6.22 million tonne (MT) — this included 5.03 MT by ONGC, 0.81 MT through joint ventures and 0.38 MT as condensate.  Gas price was also up during the quarter to $3.06 per million metric British thermal unit, up 23 per cent from $2.48 during the same time in 2017-18.  

The company’s total gas production was up 3.2 per cent from 5.99 MT in April to June 2017-18 to 6.19 billion cubic meter(bcm) during the current year. This included 5.92 bcm by ONGC and 0.27 bcm through joint ventures. During the quarter under review, the company posted an increase of 12 per cent in the production of value added products too. 

This comes soon after an international arbitration tribunal today ruled in favour of a consortium led by Mukesh Ambani-led Reliance Industries (RIL) in the controversial gas migration dispute with ONGC, in which the government company alleged RIL of intentionally producing gas from its block in KG basin.