ONGC's consolidated net profit dropped 31.1% to Rs 3,763.53 crore on 8.4% fall in net sales at Rs 1,00,288.83 crore in Q3 December 2020 over Q3 December 2019.
Profit before tax (PBT) tumbled 31% to Rs 6,138.14 crore in Q3 December 2020 as against Rs 8,889.77 crore in Q3 December 2019. Current tax expense for the quarter jumped 14.6% to Rs 2,467.24 crore as against Rs 2,153.61 crore paid in Q3 December 2019. The Q3 result was declared on Saturday, 13 February 2021.
On a standalone basis, net profit tanked 67.4% to Rs 1,378.23 crore on 28.2% decrease in net sales at Rs 17,023.80 crore in Q3 December 2020 over Q3 December 2019. The board has declared an interim dividend of Rs 1.75 per equity share. The record date is set on Saturday, 20 February 2021.
Total crude oil fell 3.3% to 5.632 million metric tonnes (MMT) in Q3 December 2020 over 5.823 MMT in Q3 December 2019. Total gas declined 5.9% to 5.809 billion cubic metre (BCM) in Q3 FY21 from 6.173 BCM in Q3 FY20. Value added products skid 9.9% to 809 kilo tonnes (KT) in Q3 December 2020 as against 898 KT in Q3 December 2019.
Despite countrywide lockdown due to COVID-19 pandemic, ONGC has almost reached last year's production levels in case of crude oil from its operated blocks. The shortfall in gas production is primarily due to less offtake by customers due to COVID-19 pandemic, the press release added.
Meanwhile, the board has approved the creation of a new wholly owned subsidiary company for focusing on Gas & LNG business value chain subject to necessary approvals. The company is being formed with the objective of sourcing, marketing and trading of natural gas, LNG business, Hydrogen enriched CNG (HCNG), Gas to Power business, bio-energy/bio-gas/bio methane/other bio fuels business, etc.
The board has also approved the acquisition of 5% equity in Indian Gas Exchange (IGX) as strategic investment. IGX is a subsidiary of IEX, India's first power exchange. IGX is presently India's first and only authorized gas exchange, which provides an automated platform for trading of natural gas, covering wide range of products. ONGC aims to participate at the gas exchange for development of gas sector.
ONGC's interests towards realizing maximum value from its gas marketing efforts may be substantiated through this first gas trading platform in the country. It is expected that this partnership will play a role in achieving the Government of India's (GOI) vision for increasing the share of natural gas to 15% from 6% in energy basket.
ONGC has declared total 8 discoveries (3 in onland, 5 in offshore) during FY 2020-21 in its operated acreages. Out of these, 4 are prospects (1 in onland, 3 in offshore) and 4 are pools (2 in onland, 2 in offshore).
Shares of ONGC slipped 0.67% at Rs 96.35 on BSE. ONGC is India's largest integrated oil and gas company. ONGC is 60.41% owned by the Government of India as on 31 December 2020.
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