ONGC Q4 net dips 16% on fuel subsidy payout

State-run Oil and Natural Gas Corporation (ONGC) today reported a 16 per cent drop in its net profit in the quarter ended March 31, 2009, on LPG and kerosene subsidy payout and one-time liability on a field operated by Cairn.

Net profit dipped to Rs 2,206.76 crore in January-March quarter from Rs 2,627.10 crore a year ago, company Chairman and Managing Director R S Sharma told a news conference here.

ONGC paid Rs 852 crore to subsidise LPG and kerosene in Q4 and also provided for Rs 860 crore towards additional profit petroleum that the government has sought from Cairn-ONGC consortium for Ravva oil and gas field, he said.

ONGC has 40 per cent stake in Ravva oil and gas field. Total operating income of the company also fell to Rs 13,833.58 crore from Rs 16,699.21 crore in Q4 of 2007-08 on lower sales.

ONGC's oil production declined to 6.460 million tonnes in Q4 against 6.915 million tonnes a year ago. Gas output, however, increased to 5.347 billion cubic meters from 6.158 bcm, Sharma said.

For 2008-09, ONGC posted a net profit of Rs 16,126.31 crore, down by 3.44 per cent from Rs 16,701.65 crore in FY08.

Sharma said ONGC paid Rs 28,225 crore to subsidised LPG and kerosene in FY09. "The impact of the subsidy on the net profit was Rs 15,798 crore."

ONGC declared a final dividend of Rs 14 per share for the 2008-09 fiscal.

Shares of ONGC today closed at Rs 1,051, up 2.39 per cent on the BSE.