Oil and Natural Gas Corporation (ONGC) has reported a consolidated net profit of ₹1,090.03 crore for the first quarter of financial year 2020-21. This is significantly lower than the ₹7,120.08 crore consolidated profit reported by the company in the same quarter of the previous financial year because of the Covid-19 pandemic.

On a standalone basis, ONGC’s net profit crashed to ₹496 crore in the quarter ended June 30, 2020, down from ₹5,980 crore reported in the quarter ended June 30, 2019. Standalone gross revenue stood at ₹13,011 crore in the first quarter of fiscal 2020-21, down from ₹26,555 crore in the same quarter of fiscal 2019-20.

The fall in profit and revenue coincides with a fall in average net realisation for crude oil produced from most of ONGC’s fields. The net realisation from ONGC’s nominated fields fell to $28.72 a barrel, down from $66.32 in the comparable quarter of the last fiscal.

Consolidated total income for the period under review also reported a decline to ₹63,575.47 crore against ₹1,11,088.54 crore in the comparable quarter of fiscal 2019-20.

The consolidated earnings of ONGC also account for the business of downstream subsidiaries, Hindustan Petroleum Corporation Limited and Mangalore Refinery and Petrochemicals Limited.

“The financial results for the quarter are impacted by very low realised crude oil due to the Covid-19 pandemic, but also by the volatile global crude oil markets,” ONGC said in a statement to the BSE.

“Oil, gas and petroleum products were declared as essential services by government during lockdown. The company continued producing and supplying crude oil and natural gas to its customers during the lockdown period. 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,” the company said.

According to ONGC, gas offtake has now been restored to normal levels with gas demand increasing to pre-Covid-19 levels after relaxations in lockdown and gradual opening of industries.

Total crude oil production during the period under review stood at 5.665 million tonne, down from 5.869 million tonne in the comparable quarter. Total natural gas production was at 5.544 billion cubic metres (BCM), down from 6.420 BCM in the same quarter of the previous fiscal.

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