ONGC's Q3 net profit down 50 percent

The Oil and Natural Gas Corporation (ONGC) Saturday reported a decline of 49.9 percent in its net profit for the quarter ended Dec 31 which stood at Rs.3,571 crore from Rs.7,126 crore in the like period of 2013-14.

The fall in net profit can be attributed to the government's directive to the company to share the burden of under recoveries of the three oil marketing companies (OMCs) by giving them discount on crude oil.

The company bore an impact of Rs.5,386 crore on its net profit on account of the under-recovery discount it provided to the three OMCs.

The company's gross revenues declined by 9.9 percent at Rs.18,770 crore in the quarter under review from Rs.20,833 crore in the like period of the previous fiscal.

The company's crude oil production increased by 3.4 percent at 5.3 million tonnes in the quarter under review.

The company share of under recoveries of the three OMCs on account of giving them discount on crude oil stood at Rs.9,458 crore in the quarter under review from Rs.13,764 crore in the corresponding quarter of the previous year.

In a regulatory filing to the Bombay Stock Exchange (BSE), the company notified two more hydrocarbon discoveries in KG (Krishna-Godavari) offshore basin.

With the two new discoveries the company has notified 18 new finds so far in the current fiscal.

For the nine months ended Dec 31, the company reported a decline of 19.8 percent in its net profit which stood at Rs.13,798 crore from Rs.17,206 crore in the corresponding period of the previous fiscal.

The company's gross revenues for the nine months ended Dec 31 fell by 2.4 percent at Rs.61,010 crore from Rs.62,499 crore in the like period of the previous fiscal.