Oil and Natural Gas Corporation (ONGC), the country’s biggest energy explorer, has reported a 12 per cent rise in net profit for the quarter ended June despite a 118 per cent jump in subsidy burden. Net profit for the quarter stood at Rs 4,095 crore while net sales rose 18.7 per cent to Rs 16,268 crore.
ONGC’s subsidy burden more than doubled to Rs 12,046 crore during the quarter, negating the gains of a higher crude oil realisation.
The subsidy payout is given by the government owned company in the form of discount to government owned refiners that are required to sell diesel, kerosene and domestic LPG at government regulated prices. While the company’s gross realisation on a barrel of crude oil rose 50 per cent to $121, its net realisation (after subsidy) rose just 1.5 per cent to $48.76 per barrel.
The company produced 5.933 million tonnes of crude oil during the quarter, down two per cent from same period last year. Its gas production for the quarter was also lower by 2.7 per cent at 5.605 billion cubic metres.
