ONGC’s profit up 15% on oil price rise

Oil and Natural Gas Corporation reported a ₹5,014.67-crore net profit for the third quarter of the financial year 2017-2018.

This is 15.21 per cent higher than the ₹4,352.33-crore net profit during the corresponding period of the last financial year. The higher profit is despite a 1 per cent dip in crude oil production at 6.34 million tonnes.

The rise in bottomline coincides with the 14.9 per cent rise in the total income compared to the same period of the last financial year. Gross revenue stood at ₹ 24,122.42 crore.

A better financial performance is warranted with the firming up of crude oil prices. The company’s dollar per barrel realisation, from nominated fields, during the October to December 2017 period stood at $ 60.58 per barrel. This is 16.9 per cent higher than the $51.80-per-barrel realisation accrued during the same period of the last financial year.

ONGC reported a 4.2 per cent hike in gas production at 6.277 billion cubic metres (BCM) during the quarter under consideration. There was a 15.6 per cent increase in the price on a gross calorific value basis at $ 2.89 per million British thermal units for the period.

A company statement however said: “The board deferred the decision on second interim dividend, if any, to the next meeting of board.” It was immediately unclear as to why this decision was taken.