ONGC First Quarter Net Profit Down 8.2 Per Cent

ONGC  First Quarter Net Profit Down 8.2 Per Cent

State-owned explorer Oil and Natural Gas Corp (ONGC), today posted 8.2 percent drop in standalone net profit for the quarter ended June on reduced gas price and higher expenses.

Net profit for the quarter stood at Rs 3,885 crore as compared to Rs 4,233 crore in the corresponding quarter last fiscal. The price of natural gas on Gross Calorific Value (GCV) basis slipped 19 per cent to $2.48 per unit in the first quarter current fiscal as against $3.06 per unit in the corresponding quarter. Also, total expenses increased 13 percent to Rs 13,990 crore.

ONGC’s net realisation from nominated fields rose 10.7 per cent to $51.03 per barrel while the realisation from Joint Venture projects increased 18 per cent to $45.92 per barrel. The company’s Gross Revenue increased 7.2 per cent to Rs 19,073 crore during the quarter

The company said in a statement total crude oil production increased 1.6 per cent to 6.4 million tonne (MT) while natural gas production rose 2.8 per cent to 6 billion cubic meter (bcm) during the June quarter.

ONGC also announced that it has made five new discoveries in the first quarter of 2017-2018. “ONGC has notified 5 discoveries in Q1, FY’18 (3 new prospects and 2 new pool discoveries). Out of the five discoveries, three have been made in offshore blocks while two discoveries have been made in onshore blocks,” ONGC said in a statement.

The firm also announced its decision to relinquish 30 percent Participating Interest in the Jaisalmer basin in Rajasthan to Focus Energy Limited, adding the government has already approved the relinquishment decision.

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“The company has proposed to relinquish 30 per cent Participating Interest in SGL field with future interest in block RJ-ON/6 Jaisalmer Basis Rajasthan to Focus Energy (Operator), on condition that Focus Energy will pay towards 100 per cent past royalty obligation, PEL/ML fees, other statutory levies and waive off development/production costs payable by ONGC in SGL field of the block as well as take all future 100 per cent royalty obligation of ONGC as licensee and also not exercise its option of acquiring 30 per cent PI in the two gas discoveries namely SSG-1 and SSF-2 Block,” the company said.

ONGC’s share price at the Bombay Stock Exchange (BSE) today closed at Rs 163.45, down 0.34 per cent as compared to previous close.

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