The state-run oil major's consolidated net profit surged 328.81% to Rs 18055.01 crore on 45.93% rise in net sales to Rs 122029.47 crore in Q2 September 2021 over Q2 September 2020.
On a consolidated basis, profit before tax rose 43.42% year-on-year to Rs 12101.68 crore. During the quarter, total expenses rose 46.15% YoY to Rs 111881.47 crore. Raw material cost increased 67.48% YoY to Rs 21725.18 crore.On a standalone basis, ONGC recorded 565.3% surge in net profit to Rs 18,348 crore in Q2 FY22, higher than net profit of Rs 2,758 crore in Q1 FY21. Net sales rose 44% YoY to Rs 24,353 crore during the period under review.
The sharp jump in the bottom line of the company was due to a net tax writeback of Rs 7,195.37 crore in the quarter. During the quarter, the company opted for lower tax regime u/s 115BAA of the Income Tax Act, 1961, with effect from FY 2020-21. Accordingly, the company recognized provision for tax expenses and re-measured its net deferred tax liabilities. The net impact due to availing the option has resulted in decrease in deferred tax by Rs 8,541 crore and decrease in current tax by Rs 1,304 crore.
During the quarter under review, the net realisation per barrel of crude oil produced by ONGC from nominated fields rose to $69.36 a barrel, up 67.6% from $41.38 a barrel in Q2FY21. Realisation from joint venture fields increased 70% to $71.11.
Gas price realised by ONGC dropped a quarter to $1.79 per mmBtu during July-September.
Total crude oil production during the quarter fell by 3.8% to 5.471 million tonnes. Gas production declined 7% to 5.467 billion cubic metres during the quarter under review.
The production of crude oil and gas declined during current year mainly due to restrictive conditions created by cyclone Tauktae and due to Covid impact. Further delay in mobilization of MOPU Sagar Samrat to WO-16 Cluster project impacted production from this field.
The board of ONGC has declared an interim dividend of Rs 5.50 per equity share for the Financial Year 2021-2022. The record date for distribution of dividend has been fixed for 23 November 2021.
ONGC is India's largest integrated oil and gas company. ONGC is 60.41% owned by the Government of India.
Shares of ONGC were up 2.88% to Rs 159.10 on the BSE.
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