Maharatna company Oil and Natural Gas Corporation (ONGC) on Wednesday reported 19 per cent rise in net profit for the April-June quarter to Rs 4,782 crore on realising higher crude oil prices.
Net profit of Rs 4,782 crore was 19.07 per cent higher in the first quarter of 2014-15 than Rs 4,016 crore which the company had recorded in the corresponding period of the previous fiscal, a statement issued by ONGC said.
ONGC, which had almost flat crude oil production in Q1, had a net realisation of $47.51 per barrel as compared to $40.33 a barrel in Q1, 2013-14. This was despite the subsidy outgo rising 4 per cent to Rs 13,200 crore.
Upstream oil producers like ONGC have to bear a portion of the losses that fuel retailers make on selling diesel, domestic lPG and kerosene at government controlled rates. This they do by extending discounts on crude oil they sell to retailers.
Exploration-related write-offs during the quarter, on account of dry wells, more-than-doubled toRs 3,828 crore, the statement added. ONGC said its gross realisation was $109.48 per barrel in Q1, up 6.23 per cent from $103.06 in April-June 2013. After paying for fuel subsidy, it got $47.51 a barrel.
The subsidy discount was $62.33 per barrel in Q1 as compared to $62.73 last year. The company said its net profit should have been higher by Rs 7,396 crore but for this subsidy discount.
ONGC said its crude oil production was almost flat at 5.1 million tonnes while gas output dipped 2.11 per cent to 5.775 billion cubic meters. Sales rose 13.12 per cent to Rs 21,813 crore. The company made six new oil and gas fields in western offshore and KG basin.
ONGC said it sold the first cargo of around 1.2 million barrels of crude oil from its Carabobo project in Venezuela to Reliance Industries’ Jamnagar refinery. The cargo arrived at Jamnagar on July 7, the statement said."The crude was shipped by Bunga Kasturi Dua (vessel) from Venezuelan port to Sikkar, Gujarat in approximately 40 days," it said.
ONGC Videsh ltd, the overseas arm of the state explorer, holds 11 per cent interest in the Carabobo project. Oil India ltd and Indian Oil Corp (IOC) hold 3.5 per cent stake each in the project while Spain’s Repsol has 11 per cent interest.