ONGC net dives 92% to Rs 496 crore on oil price crash
NEW DELHI: Flagship explorer ONGC’s standalone net profit dived almost 92% to Rs 496 crore in the April-June quarter from from Rs 5,980 crore in the previous corresponding period as a result of the April oil price crash and the subsequent spell of subdued prices as well as gas price shrinking to lowest in a decade.
The profit came about as the company delayed payment of cess on crude. After the oil price crash, ONGC deferred paying royalty in anticipation of relief from the government to deal with a oil price crash. It paid royalty at the ned of June and cess in July. ONGC pays about Rs 400 crore of royalty and cess every quarter to the government.
