ONGC Q1 Net Up 12% At Rs 4095 Cr

State-owned Oil and Natural Gas Corporation (ONGC) today reported 12% increase in net profit for the quarter ended 30 June, even after their fuel support payments more than doubled.

April-June net profit rose 11.9% to Rs 4,095 crore, ONGC chairman and managing director AK Hazarika told reporters here.

"Our gross sales realization on crude oil $ 121.29 per barrel in Q1, but after that the support of our discounts and net realizable value was only $ 48.76 per barrel, almost as if the net realizable value in the same period last fiscal year," he said.
ONGC and other upstream companies account for less than a third of the proceeds from the sale of the refinery to remove diesel, domestic LPG and kerosene below cost. This will help in the form of discounts on crude oil refinery ONGC sells.

In Q1, fuel assistance payment of Rs 12,046 crore was more than twice the Rs 5,515 crore in the same period last year, he said.

Hazarika said the increase in profitability due to an increase in crude oil production joint venture projects, such as Cairn India Rajasthan fields.

He added that Rs 728 crore had more income, because the increase in production from fields in the joint venture. Also, higher gas prices Rs 955 crore in additional revenues.

ONGC crude oil output fell by 2%, including 5.933 million tonnes and the results of their joint venture projects was to show 2.3% rise to 6,758,000 tons.

Natural gas fell 2.7% to 5.603 billion cubic meters.

ONGC Director (Finance) DK Sarraf said the company paid a royalty of Rs 546 crore Cairn India Rajasthan crude oil in April-June quarter.

Cairn India has 70% stake in oil fields in Rajasthan, but do not pay a license fee. ONGC paid Rs 235 crore of its shares and 30% for RS 546 crore Cairn India.

Last financial year, ONGC has paid Rs 1,290 crore on behalf of Cairn India.

Turnover in April-June were up 18.7% to Rs 16,268 crore.