ONGC books Rs 1,238 cr impairment loss, Q2 net profit down 55%

NEW DELHI: India’s top oil and gas producer ONGC booked a Rs 1,238-crore impairment loss, which together with a fall in prices led to a 55 per cent drop in the company’s September quarter net profit.
Standalone net profit at Rs 2,878 crore in July-September quarter was 54.6 per cent lower than Rs 6,336 crore net profit a year ago, the company said in a statement.
Revenue dropped 31 per cent to Rs 16,917 crore.
The company got $41.38 for every barrel of crude oil it produced and sold in the second quarter of the current fiscal. This was 31.4 per cent lower than $60.33 per barrel price it had got in July-September 2019.
Gas price was also down by more than one-third to $2.39 per million British thermal unit.
“The revenue and profit-after-tax (PAT) for Q2 and H1 of FY’21 have declined as compared to corresponding period of FY’20 mainly due to lower crude oil price realisation. Lower gas prices also contributed to lower topline and bottomline,” it said.