ONGC has gained more than a percent at Rs 379 on the BSE after its net profit surged 44.3% to Rs 4889 crore for the fourth quarter ended March 2014.
ONGC posted a net profit of Rs 4,889 crore for the quarter ended March, up 44 per cent compared with Rs 3,387 crore for the corresponding period last year, owing to higher forex gains. However, the company reported its lowest net realisation, owing to a high oil subsidy burden.
"The higher net profit was pushed by reduced write-offs due to dry wells (unsuccessful drilling). During the fourth quarter of 2012-13, we had written off Rs 4,127 crore towards dry holes, which came down to Rs 1,906 crore in FY14. The company paid Rs 16,202 crore on subsidy in the fourth quarter, compared with Rs 12,312 crore in the previous year," said A K Banerjee, director (finance).
For FY14, the company's net profit increased six per cent to Rs 22,095 crore, compared with Rs 20,926 crore in FY13. Its oil subsidy bill for FY14 was Rs 56,384 crore, it highest. This pulled down profit after tax by Rs 31,524 crore. For FY15, ONGC aims to spend Rs 36,000 crore on capital expenditure.
ONGC is India's largest government-run corporation and produces about 70% of India's crude oil and natural gas.
The shares had opened at Rs 374 and have touched a high of Rs 382 and a low of Rs 371 thus far.
