Public sector hydrocarbon explorer and producer Oil and Natural Gas Corporation (ONGC) Ltd has reported a 21.14 per cent fall in net profit for the first quarter of 2016-17, primarily on account of lower crude oil prices. The company’s net profit for the quarter stood at ₹4,233 crore against ₹5,368 crore in the same quarter last year.

During the quarter, the company’s gross revenue also fell 21.41 per cent to ₹17,784 crore against ₹22,628 crore in the same quarter last year.

The company said in a statement that the net price realisation for crude oil during the quarter fell 21.97 per cent to $46.10 per barrel against $59.08 per barrel in the same quarter last year. This is despite the company giving a discount to public sector oil marketing firms for crude oil in the same quarter last year.

Typically, public sector oil exploration and production companies sell crude oil at a discount to public sector oil marketing companies to compensate for sensitive refined products such as kerosene and domestic LPG being sold at less than market rates. During the quarter under review, ONGC did not have to give any discount.

Hydrocarbon production

Apart from lower crude oil prices, ONGC’s production of the hydrocarbon was also marginally lower. The company produced 6.012 million tonnes of crude oil during the quarter, which was 2.02 per cent lower than 6.136 million tonnes in the same quarter last year.

ONGC’s total natural gas production during the quarter was 5.55 per cent lower at 5.494 billion cubic metre as compared to 5.817 billion cubic metre in the same quarter last year.

Seven discoveries

Meanwhile, the company said in a statement that it has notified seven discoveries in the first quarter of fiscal 2016-17. These are in Assam, Cambay, Mumbai Offshore and the KG Onland basin in Andhra Pradesh.

On Wednesday, the company’s shares closed 2.51 per cent higher on the BSE at ₹245.10.

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