State-run Oil and Natural Gas Corporation (ONGC) today reported a six per cent increase in its net profit at Rs 5,089.64 crore during the second quarter ended September 30, 2009.
The profits were lower by Rs 1,491 crore as it was asked by the government to pay Rs 2,630 crore fuel subsidy by way of discounts on crude oil it sells to state-run refiners. The subsidy pay-out, however, was lower than Rs 12,663 crore pay out in the same period last fiscal.
The company's sales, however, fell to Rs 15,080.59 crore from Rs 17,407.40 crore on a dip in oil production and its prices, ONGC said in a filing to the Bombay Stock Exchange (BSE).
For the half year ended September 30, 2009, ONGC net profit fell to Rs 9,937.56 crore from Rs 11,444.74 crore a year ago mostly because of lower per barrel realisation on crude sales.
Crude oil price had peaked $147 a barrel in August 2008.
The company paid Rs 3,059 crore towards fuel subsidies in H1 as compared to Rs 22,474 crore in the corresponding period last year. It estimated that its profit in H1 would have been higher by Rs 1,733 crore, if it had not made these subsidy payouts.
The upstream companies like ONGC have to bear the entire revenue loss retailers IOC, HPCL and BPCL incur on selling domestic cooking gas (LPG) and kerosene at below cost.
The company's sales dropped to Rs 29,959.86 crore from Rs 37,459.60 crore in the same period last fiscal.
