ONGC profit falls on low crude prices

Natural gas production, however, rose by close to 4 per cent to 6.15 billion cubic metres during the period. 

Published: 14th August 2019 07:58 AM  |   Last Updated: 14th August 2019 07:58 AM   |  A+A-


Image used for representational purpose. (File | Reuters)

By Express News Service

NEW DELHI: State-run oil explorer Oil and Natural Gas Corp (ONGC) disclosed a 3.9 per cent fall in its net profit for the first quarter of financial year 2019-20 (Q1FY20) as a decline in global crude oil prices and lower production impact its bottomline. 

The company posted a net profit of Rs 5,904 crore during Q1FY20, compared to Rs 6,144 crore during the same period last year. Brent crude prices had fallen from nearly $75 per barrel on April 23 to just $66.55 per barrel at the end of June. 

ONGC consequently saw its revenues also fall 2.4 per cent during the period at Rs 26,555 crore from Rs 27,213 crore the last year. The oil and gas producer’s net realisation also fell, by 7.3 per cent in dollar terms and 3.8 per cent in rupee terms, coming in at $66.3 per barrel and Rs 4,612 per barrel respectively. These figures had stood at $71.49 and Rs 4,792 per barrel respectively the previous year.  
However, natural gas price net realisation shot up sharply by 20 per cent to $3.69 per million British thermal unit. 

As for consolidated numbers, gross revenue fell by 0.8 per cent and net profit fell by a sharp 24.4 per cent during the period. 

Production also slowed down, ONGC pointed out, with oil production declining 4.7 per cent to 4.8 million tonnes. 

Natural gas production, however, rose by close to 4 per cent to 6.15 billion cubic metres during the period. 

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