Higher realisations come as a boost to ONGC; volume growth may pick up

Volume growth, however, was tepid at three per cent for natural gas, while oil output was down four per cent

Improving realisations was the main factor responsible for ONGC’s better-than-expected performance in the June quarter, at both revenue and operating profit levels. 

And the trend is likely to remain positive, which is why analysts are positive on the company.

Reaping benefits of improving crude oil and natural gas prices, ONGC saw a strong jump in realisations. 

Its net realisation for oil at $74.2 a barrel rose 46 per cent, while gas realisation at $3.1 per mmbtu (million metric British thermal unit) was up 19 per cent, over the year-ago quarter. 

As a result, revenues jumped 43 per cent year-on-year (13.5 per cent sequentially), while