State-owned Oil and Natural Gas Corporation’s net profit was up 48 per cent at Rs 6,078 crore for the quarter ended June, against Rs 4,095 crore in the corresponding quarter of last year.
The company attributed the increase to the weakening rupee and lower charges from dry wells on its P&L account.
Addressing a press conference after announcing the results, ONGC Chairman Mr Sudhir Vasudeva, said: “Due to dollar appreciation, our realisation in terms of rupee has been more this quarter which has helped us post higher profit. Moreover, the charging of dry wells to our P&L account has been lower this quarter leading to higher profits.”
He said the company’s net realisation for crude oil stood at $46.62 a barrel this quarter against $48.7 in the year-ago period. ONGC’s subsidy burden for the quarter stood at Rs 12,346 crore (Rs 12,046 crore). Apart from notifying four discoveries in the last one month, ONGC also announced a fresh discovery of its third largest reservoir in Mumbai Offshore sector of Western Offshore Basin.
“With the help of this new reserve, we plan to ramp up our oil production from 35,000 barrels a day to 60,000 barrels a day,” he added.