Oil and Natural Gas Corporation reported an increase in net profit by 60.4 per cent in the second quarter of the current fiscal.
The net profit grew to Rs 8,642 crore from Rs 5,389 crore in the corresponding period a year ago, riding on lower subsidy burden and higher variation in oil prices in the second quarter.
“Apart from the lower subsidy burden, the variation in crude oil prices has helped us get Rs 4,392 crore more compared to second quarter of last fiscal. Moreover, there was lower production in this quarter compared to the same last fiscal as targets were lower,” the company said.
Subsidy share
In terms of the Central Government's decision, the company shared the under-recoveries of Oil Marketing Companies for the second quarter ended September 30 of the current fiscal by allowing discount in the prices of crude oil, PDS kerosene and domestic LPG.
With this, the impact on the company's profit after tax stood at Rs 3,222 crore compared to Rs 1,721 crore from the year-ago period.
Cairn royalties
The company clarified that the net profit growth had been reported without including the royalties from Cairn India, which are expected to be accounted in the next quarter.
“A ballpark figure of about Rs 1,900 crore after tax is expected on account of the cost recovery of royalties. This is likely to happen in the next quarter as the final modalities are being worked out,” the company added.
The company has made three new discoveries during the second quarter of this fiscal and one more in October taking the total to nine.
The value of the ONGC stock closed at Rs 277.65, down 0.30 points from the previous close.