ONGC profit falls 31%, company’s board approves creation of new subsidiary for marketing, trading natural gas
Oil and Natural Gas Corporation (ONGC) reported a profit of Rs 3,763.5 crore on a consolidated basis for the quarter ended December, 31.1% less than the profit made in the same period a year ago, mainly on the state-run oil and gas producing company’s lower crude price realisation and under-recoveries in the gas business. The company’s board, on Saturday, has approved creation of new subsidiary for marketing and trading natural gas. The board has also decided to pay an interim dividend of Rs 1.75 on each equity share of Rs 5.
The company, which produces about 65% of domestic crude oil, supplied 5.6 million tonne (MT) of crude oil in the quarter from its ageing oilfields, recording an annual drop of 3.3%. Its natural gas output fell 5.9% year-on-year (y-o-y) to 5.8 billion cubic metres. ONGC’s realisation from crude oil from its nominated fields fell 27.7% to $43.2 per barrel during the December quarter, compared with the year-ago period. Gross revenue was down 8.4% y-o-y to Rs 1lakh crore in the quarter.
