Analysts see 67% rise in ONGC Q4 net

Crude oil rose to a record $139.89 a barrel on June 16 this year from $59.25 a barrel in June 2007. India's crude oil prices also shot up to $93.77 a barrel between January and March 2008 compared to $56.50 a year ago.

ONGC had posted a net profit of Rs 2,681 crore for the quarter ended March 2007.

 

"Though subsidies were higher, the crude oil prices were also high. This will offset the subsidy burden for the company and high prices will drive its revenues," said a Mumbai-based analyst.

Upstream companies share one-third of the subsidy bill incurred by state-owned oil marketing companies on sale of petrol, diesel, cooking gas and kerosene. ONGC's share of subsidy for FY08 amounts to Rs 22,000 crore. The oil explorer's sales are expected to rise 21 per cent in the quarter to Rs 15,000 crore. "Between January and March 2008, ONGC's subsidy burden rose 82 per cent from Rs 4,600 crore a year ago to the present Rs 8,400 crore," added the analyst.

A Newswire18 report said that ONGC's subsidy burden has risen to $50.71 a barrel from $24.84 last year. An ONGC official said the company's net realisation during the March quarter was $49.66 a barrel as against $35.59 a barrel during a year ago quarter. The official said, in rupee terms, ONGC's net realisations during January-March period stood at Rs 1,977.55 a barrel as against Rs 1,572.01 a year ago.

"In the March quarter, we took an exchange rate of Rs 39.82 against every dollar compared to Rs 44.17 a year ago," he said.

Shares of ONGC closed 3.61 per cent down at Rs 855 on the Bombay Stock Exchange on Tuesday.