ONGC Q3 profit halves on falling oil prices

The state-run oil explorer's consolidated net profit dropped 47.8% to Rs 4,903.68 crore on 6.7% decline in net sales to Rs 1,09,443.39 crore in Q3 December 2019 (Q3 FY20) over Q3 December 2018 (Q3 FY19).

Profit before tax (PBT) slipped 34.4% to Rs 8,834.02 crore year-on-year (YoY). Current tax expenses fell 38.1% to Rs 2,153.62 crore during the period under review. The result was disclosed after trading hours on Friday, 14 February 2020.

On a standalone basis, net profit fell 49.8% to Rs 4,151.63 crore on 14.4% decline in net sales to Rs 23,710.05 crore in Q3 FY20 over Q3 FY19. PBT slumped 50.3% to Rs 5,998.57 crore YoY. Current tax expenses dropped 62.5% to Rs 1,210.92 crore during the period under review.

 

Crude oil production during the quarter declined 3.5% to 5.82 Million Tonne (MT). Oil price realisation from nominated blocks dipped 10% to $59.73 per barrel during the December quarter. Similarly, oil price realisation from the fields operated under joint ventures declined 4.5% to $58.24 per barrel during the quarter.

Natural gas production decreased 7.7% to 6.17 Billion Cubic Meter (BCM) during the third quarter. Gas price realisation declined 3.9% to $3.23 per million british thermal units (MMBTU).

ONGC said it has made 10 discoveries so far in FY20 (6 prospects and 4 pool).

Shares of ONGC fell 1.99% to Rs 103.25 on Friday, 14 February 2020.

ONGC is engaged in the exploration, development and production of crude oil and natural gas. As of 31 December 2019, the Government of India held 62.78% stake in the company.

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