The Hindu Business Line : ONGC gains from high oil prices; net up 20 pc in Q2

HIGH global crude prices lifted the profitability of Oil and Natural Gas Corporation (ONGC) during the second quarter of the current fiscal ended September 30. ONGC's profit after tax rose 20 per cent while its turnover rose 34.6 per cent during April-September over the corresponding period last year.

Every $1 per barrel increase in global crude price increases ONGC's profits by roughly Rs 250 crore per quarter. Since the crude prices averaged $44 per barrel in the second quarter compared to $33 per barrel in the previous quarter, ONGC gained Rs 2,500 crore. It, however, paid out Rs 989 crore towards sharing of the LPG and kerosene subsidy bill borne by public sector oil marketing companies. ONGC recorded a net profit of Rs 3,384 crore on a turnover of Rs 11,903 crore during the period under review. For the corresponding period last year, the company recorded a net profit of Rs 2,825 crore on a turnover of Rs 8,785 crore.

Besides the rise in crude prices, trading contributed Rs 2,497 crore to the turnover in the second quarter of the current fiscal.

GAIL net down 6 pc

GAIL (India) Ltd has recorded a 6 per cent drop in its net profit during the second quarter of the current fiscal ended September 30, compared to the corresponding period last year. This is mainly due to the sharing of the subsidy bill on sale of LPG by public sector oil marketing companies.

GAIL recorded a net profit of Rs 456.16 crore during July-September, 2004, as compared to Rs 487.12 crore in the corresponding period last year. The total sales, however, increased from Rs 3,083 crore to Rs 3,524 crore for the period under review.

As per a government prescribed formula for sharing of subsidy on LPG, GAIL paid Rs 268 crore to the public sector oil marketing companies during the second quarter of the current fiscal ended September 30.

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