Results are impacted by very low realised crude oil due to the COVID-19 pandemic and the volatile global oil market.
State-owned Oil and Natural Gas Corporation (ONGC) on September 1 reported standalone profit at Rs 496 crore for the quarter ended June 2020, against a loss of Rs 3,098.3 crore in the previous quarter.
Standalone revenue from operations during the quarter stood at Rs 13,011.3 crore, down by 39.4 percent impacted by very low realised crude oil due to the COVID-19 pandemic, but also by the volatile global crude oil markets, the company said in its BSE filing.
"Offtake of crude oil by refineries is not affected, though there has been a reduction in gas production due to less offtake by some customers causing marginal reduction in gas sale, which has been now restored to normal levels with gas demand increasing to pre-COVID-19 levels after relaxations in lockdown and gradual opening of industries and various customers," it added.
Bottomline and topline were lower than analysts' expectations. A CNBC-TV18 poll estimated profit at Rs 711 crore on Rs 13,956 crore revenue for the quarter.
At operating level, standalone earnings before interest, tax, depreciation and amortisation (EBITDA) declined 31.2 percent sequentially to Rs 5,907.7 crore but margin expanded to 540 bps QoQ to 45.4 percent in Q1FY21. Both beat a CNBC-TV18 poll estimates of Rs 5,160 crore and 36.9 percent respectively.
Find All Earnings Related News Here
Other income fell sharply to Rs 436.82 crore in Q1FY21 against Rs 1,325.64 crore in Q4FY20.
Meanwhile, the company said board members have approved raising up to Rs 35,000 crore via debt.