ONGC net up 103% to Rs 3493 cr

BS 200 SCORECARD

Oil and Natural Gas Corporation (ONGC) today reported a 103 per cent increase in net profit to Rs 3,493.82 crore during the third quarter of the current financial year on account of higher crude oil prices.

A part of the gain was offset owing the Rs 1,332 crore ONGC had to provide to oil marketing companies as its share of under-recoveries on petroleum products.

A company statement said profit for the quarter would have been 63 percent higher if it were not for the subsidy sharing.

The company paid Rs 3,114 crore as subsidy to Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation during April-December 2004 period compared to Rs 1,536 crore in the corresponding period last year.

ONGC's sales revenue of Rs 12,134 crore was up 65 per cent from Rs 7,335 crore during October-December last year.

During the nine months ended December 2004, the company reported a 38 per cent increase in net profit at Rs 9,185 crore on a turnover of Rs 34,423 crore.

The company's sales increased 44 per cent during April-December 2004.

At the end of December 2004, earnings per share was Rs 64.42 a share against Rs 46.83 at the end of December 2003.

The numbers for its core business of oil and gas production were, however, not impressive. The crude oil production stagnated in the third quarter at 6.68 million tonne. The natural gas production fell to 5.873 billion cubic metre during the third quarter of the current year as against 5.957 bcm during October-December 2003.

Chairman Subir Raha told reporters that the growth in profit came mainly on the back of higher crude oil prices.

"We were also able to maintain, or even marginally increase, our production," Raha said, adding that he expected crude output during the full year to touch 27.4 million tonne and hit 28 mt in 2005-06.

Raha said that though 3 per cent appreciation in its crude oil production during the nine month period appeared small, it was from fields which were on decline.

Production from it main field of Mumbai High would increase to 15 million tonne per annum after the commissioing of its new pipeline in May 2005, he said.