ONGC Q4 net jumps 71% to Rs 3,776 cr

State-owned Oil and Natural Gas Corporation (ONGC) today reported a 71 per cent rise in net profit for the quarter ended March 31 as it realised more on crude oil it produces.

Net profit in January-March stood at Rs 3,776 crore as opposed to Rs 2,207 crore a year ago, ONGC Chairman and Managing Director R S Sharma told a news conference here.

The profit rose despite paying Rs 4,999 crore towards fuel subsidies compared to Rs 852 crore payout in Q4 of previous fiscal 2008-09.

ONGC got $51.42 for every barrel of crude oil sold in Q4 of 2009-10 against $43.40 per barrel realisation a year ago.

The price realised was after giving $27.74 per barrel discount to refiners to subsidise fuel, he said.

ONGC reported a 4 per cent rise in annual profit to Rs 16,768 crore in 2009-10, thereby maintaining its leadership as the nation's most profitable company.

Sharma said the government move to raise gas price to $4.20 per mmBtu from $1.79 per mmBtu would add Rs 5,500 crore in revenues and about Rs 3,500 crore to bottomline. "With this price increase, we will be able to wipe out entire under recoveries (revenue loss) on gas business."

ONGC lost Rs 4,775 crore in 2008-09 on selling about 50 million standard cubic meters per day at $1.79 per million British thermal unit.

Sales rose 7 per cent to Rs 14,792 crore in January-March quarter but fell 6 per cent to Rs 60,205 crore in 2009-10 full fiscal.

Sharma said it paid Rs 11,554 crore to subsidise auto and cooking fuel. "But for this payout our net profit would have been higher by Rs 6,551 crore."

The company board recommended payout of Rs 33 per share dividend for 2009-10 fiscal.

ONGC's crude oil production declined 2 per cent to 27.13 million tonnes while natural gas output rose marginally from 25.43 billion cubic meters to 25.6 bcm.

It made 21 discoveries in the fiscal.