Oil and Natural Gas Corporation (ONGC), India’s largest petroleum explorer, today posted a 44 per cent decline in consolidated net profit for the third quarter ended December 2019 at Rs 5,384 crore on the back of lower production and a drop in price realisation.
The company had posted a profit of Rs 9,562 crore in the corresponding quarter last financial year. ONGC’s revenue from operations during the third quarter also declined 7 per cent to Rs 109,443 crore.
Cumulative crude oil production during the quarter 3.5 per cent to 5.82 Million Tonne (MT). Oil price realisation from nominated blocks dipped 10 per cent to $59.73 per barrel during the December quarter. Similarly, oil price realisation from the fields operated under Joint Ventures declined 4.5 per cent to $58.24 per barrel during the quarter.
Cumulative natural gas production decreased 7.7 per cent to 6.17 Billion Cubic Meter (BCM) during the third quarter. Gas price realisation declined 3.9 per cent to $3.23 per million british thermal units (MMBTU).
ONGC’s profit before tax and interest from exploration and production operations during the quarter declined to Rs 6,561 crore from Rs 11,185 crore recorded in the corresponding quarter a year ago. Also, profit from refining and marketing business increased to Rs 1,236 crore during the quarter.
“The PSCs for Panna Mukta and Mid & South Tapti have expired on December 21, 2019. In terms of the Panna Mukta Field Asset Handover Agreement, the Contractors of PMT JV are liable for this pre-existing liability,” the company said in a statement, adding it has made 10 discoveries in 2019-20.
ONGC’s share price at the Bombay Stock Exchange (BSE) today closed at Rs 103.25, down 2 per cent as compared to previous close.