ONGC declines on posting Q4 net loss of Rs 6189 cr

ONGC fell 1.35% to Rs 80.30 after the company reported a consolidated net loss of Rs 6,189.44 crore in Q4 FY20 as against net profit of Rs 4,751.36 crore in Q4 FY19.

Net sales during the quarter fell 7.2% year-on-year (YoY) to Rs 1,04,488.95 crore. Pre-tax loss stood at Rs 10,528.96 crore in Q4 March 2020 compared with pre-tax profit of Rs 11,691.10 crore in Q4 March 2019.

On a standalone basis, the state-run oil major posted a net loss of Rs 3,098.26 crore in the fourth quarter. The company had reported a net profit of Rs 4,239.50 in the same period last year. Net sales declined by 19.8% to Rs 21,456.20 crore in Q4 FY20 over Q4 FY19.

Pre-tax loss in Q4 FY20 stood at Rs 3,892.02 crore as against a pre-tax profit of Rs 5,761.82 crore in Q4 FY19.

ONGC's crude oil price realization from its nominated fields fell 20.9% YoY to $49.01 per barrel while the price realization from the joint venture fields was down 19.4% YoY to $49.39 per barrel during the March quarter. Gas price also fell 3.9% to $3.23 per million British thermal unit (mmbtu) in Q4 FY20.

Crude oil production was lower by 1.4% to 5.819 million metric tonnes (mmt) in January-March as compared to 5.9 mmt in the previous fiscal. Natural gas output fell 7.9% to 6.04 billion cubic meters (bcm) from 6.56 bcm in January-March 2019.

"The Company has recognized an Exceptional Item towards impairment loss of Rs. 4,899 crore in Q4 FY'20 to factor into estimated future crude oil and natural gas prices. This has adversely impacted PAT for Q4 FY'20 and FY'20 as compared to last year," ONGC said.

Standalone net profit fell 49.8% to Rs 13,444.54 crore on a 12.3% decline in net sales to Rs 96,213.61 crore in the year ended March 2020 (FY20) over the year ended March 2019 (FY19). PBT stood at Rs 20,368.69 crore in FY20, down by 49.1% from Rs 40,029.06 crore in FY19.

ONGC's overseas arm, ONGC Videsh, registered 73% fall in net profit to Rs 454 crore despite a 6.2% increase in turnover to Rs 15,538 crore in FY20 over FY19. The company registered increase in production of oil and gas by 1% with net production of 14.981 million metric tonnes of oil equivalent (MMTOE) in FY'20, as compared to 14.833 MMTOE in FY'19.

ONGC is India's largest integrated oil and gas company. Its main operations include upstream exploration and production. It also has operations in downstream segments. ONGC is 60.41% owned by the Government of India (as on 31 March 2020).

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