ONGC's net profit surges 3x to Rs 15,206 crore in June quarter

Revenue from operations increased to Rs 42,320.72 crore in the first quarter of the current financial year from Rs 23,021.64 crore in the year-ago period.

India’s top oil and gas producer ONGC on Friday reported a tripling of net profit in the June quarter as it earned record prices before the government slapped a tax on windfall profits arising from a global rally in energy rates.

Oil and Natural Gas Corporation's (ONGC) standalone net profit at Rs 15,205.85 crore, or Rs 12.09 per share, in April-June, compared to Rs 4,334.75 crore, or Rs 3.45 a share, in the same period a year back, according to a stock exchange filing by the company.

Sequentially, the profit was higher than the Rs 8,859.54 crore net profit of January-March. The earnings rose as the company got $108.54 per barrel price for crude oil it sold in the quarter as opposed to $65.59 a barrel rate realised in the same period last year.

The results saw the company post second-highest quarterly profit and highest-ever revenues. International energy prices have been elevated since Russia invaded Ukraine in late February, raising concerns about global shortages given the nation's role as a key commodities supplier, especially to Europe.

West Texas Intermediate crude, the US oil benchmark, spiked to a high of $130.50 per barrel in March, while International benchmark Brent crude came within striking distance of $140. It was each contract's highest level since 2008.

The basket of crude oil that India imports averaged about $110 per barrel in the April-June quarter.

The rally prompted the government to slap a Rs 23,250 per tonne ($40 per barrel) windfall profit tax on domestically produced crude oil from July 1. The rate was reduced in subsequent reviews as global oil prices tumbled.

Oil prices have tumbled below USD 100 a barrel this month as recession fears grow, sparking fears that an economic slowdown will cut demand for petroleum products.