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ONGC Q3 net slumps 50% y-o-y as plunging crude hurts

Net profit for the quarter stood at Rs 3571 crore, compared to Rs 7126 crore during the same period of the previous year

The News International Team

State-owned  Oil and Natural Gas Corporation (ONGC) reported a 50 percent decline in net profit for the December quarter, weighed down by decrease in income, exploration costs write-off and other income.

Net profit for the quarter stood at Rs 3571 crore, compared to Rs 7126 crore during the same period of the previous year.

Total income for the quarter declined around 14 percent year-on-year to Rs 18,715 crore.

The company wrote off Rs 2475 crore towards exploration costs, compared to a write off of Rs 1810 crore during the same period the previous year.

The company’s quarterly operating profit declined to Rs 6920 crore from Rs 10,400 crore year-on-year, and operating margin fell to 37 percent from 50.1 percent.

On the positive side, there was a reduction in under-recoveries as well, which stood at Rs 9225 crore, compared to Rs 13,239 crore year-on-year.Other income declined to Rs 1377.57 crore compared to Rs 2662.33 crore the year before.

The company said it has a contingent liability of Rs 13368 crore pending a dispute with the Gujarat state government over royalty on crude oil purchased from the onshore fields in Gujarat.

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