ONGC Q3 net rises over twofold to Rs 7,083 cr

State-owned Oil and Natural Gas Corporation (ONGC) today reported an over two-fold jump in its net profit at Rs 7,083 crore for the quarter ended December 31, on the back of higher crude oil and natural gas prices and a one-time receipt of past dues.

Net profit in October-December climbed 132 per cent from Rs 3,054 crore in the same period a year ago, ONGC Chairman and Managing Director R S Sharma told reporters here.

"The rise in profit was despite higher subsidy payout (Rs 4,222 crore as opposed to Rs 3,497 crore in Q3 of last fiscal)," he said. "ONGC has much more value to be unlocked."

Upstream firms like ONGC make up for one-third of the revenues state retailers lose on selling diesel, domestic LPG and kerosene.

"We have been able to consistently show very good financial results," he said, adding that higher profits were also due to increase in crude oil production.

ONGC Director (Finance) D K Sarraf said the company got Rs 1,987 crore towards past dues on gas sales in the quarter and in subsidies on sale of fuel to the Northeast.

The company sold 7.11 million tonnes of crude oil in October-December at an average price of $89.13 per barrel as compared to $76.66 a barrel realised on sale of 6.6 million tonnes of crude oil in the same period a year ago.

After giving discounts to state retailers to make up for losses on auto and cooking fuel, ONGC's net realisation was $64.79 a barrel as compared to $57.69 a barrel in the Q3 of 2009-10.

Besides, the company got more than double the price of gas at $4.2 per million British thermal unit, he said adding that higher crude oil and gas prices gave Rs 2,803 crore additional revenues.

Also, in Q3 this fiscal the company did not have Rs 460 crore negative income in interest on loans given to its subsidiary ONGC Videsh, he said.

The provision for dry well came down to Rs 1,361 crore from Rs 2,480 crore a year ago, Sarraf said.

Sharma said though the company's earnings in US dollars had gone up by 11.8 per cent, the net revenues in rupee were much lower at Rs 2,960 per barrel in October-December this fiscal as opposed to Rs 2,690 crore in the year ago period.

This was because of rising rupee value against the US dollar.

ONGC shares rose 1.7 per cent to Rs 1,132.90 on the Bombay Stock Exchange.

Sharma said ONGC has notified five discoveries to the oil regulator DGH. These include a significant natural gas find in the Mahanadi basin offshore block MN-OSN-2000/2. The well in block, which was won in New Exploration Licensing Policy (NELP), flowed up to 3.26 million standard cubic meters per day during tests.

ONGC also struck oil and gas in western onshore basin block Karjan Extn-II nad western offshore Kutch block-I. Other discoveries were in Cauvery onland block Pundi and western offshore C-series block.