State—owned Oil and Natural Gas Corp (ONGC) today reported a 11 per cent drop in its September quarter net profit as slumping global crude prices hurt its revenues.

Net profit in the July—September quarter at Rs 4,842.02 crore was 11 per cent lower than Rs 5,444.89 crore clocked in the same period of last fiscal, it said in a statement.

While the net price for crude oil produced from nomination fields, on which the company has to pay a fuel subsidy discount, was up 18 per cent at $48.83 per barrel, the rates realised for oil produced from market—lined joint venture fields slumped 40 per cent to about $50 per barrel.

ONGC said gross realisation from nomination fields was $51.24 per barrel and it allowed a $2.41 a barrel discount to PSU refiners to help them sell kerosene at the government controlled rate. Its net realisation of $48.83 per barrel compared with $41.45 per barrel of Q2 of last fiscal.

Its’ subsidy payout of Rs 596 crore in Q2 compared with Rs 13,641 crore payout in the same period last fiscal.

The impact of the subsidy discount on profit was Rs 329 crore in July—September quarter of current fiscal, a small percentage of Rs 7,645 crore impact ONGC had to bear on account of subsidy discounts a year earlier.

ONGC said revenue was up 1.1 per cent at Rs 20,732 crore on account of higher production.

Crude oil production from its fields was up nearly 3 per cent at 5.36 million tonnes (MT) while output from joint venture fields soared 5.1 per cent to 0.91 MT.

Similarly, natural gas production from its own field was up 0.5 per cent to 5.356 billion cubic meters but joint venture output was down nearly a percentage at 0.346 bcm.

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