NEW DELHI: State-owned Oil and Natural Gas Corp(ONGC) today reported 17.5 per cent drop in net profit for its third quarter ended December as crude oil output fell.
Net profit at Rs 5,563 crore during October-December, 2012-13 was lower than Rs 6,741 crore in the year-ago period, ONGCBSE -1.61 % Chairman and Managing Director Sudhir Vasudeva told reporters here.
Vasudeva said the profit in Q3 last year was higher due to Rs 3,142 crore one-time exceptional income from cost recovery being allowed on royalty it paid on Cairn India's Rajasthan oil block.
The benefit of the decision came for the full year in that quarter and if this exceptional item was excluded, the Q-on-Q net profit should have been higher by Rs 736 crore, he said.
Also, ONGC's share in fuel subsidy was marginally lower at Rs 12,433 crore as against Rs 12,536 crore in October-December 2011-12.
Upstream firms like ONGC bear a portion of the losses retailers incur on selling diesel, domestic LPG and kerosene at government controlled rates. This they do by selling crude oil at discount to the refiners.
ONGC realised $ 47.97 per barrel after paying a discount out of $ 110.16 a barrel gross realisation. The net realisation was higher than $ 44.71 a barrel realised in Q3 last year.
Vasudeva said the net profit would have been higher by Rs 7,260 crore if it were not to foot the subsidy bill.
ONGC produced 6.05 million tons of crude oil in the third quarter, 3.02 per cent lower than 6.244 million tons output a year ago. Gas sales was almost unchanged at 5,026 million standard cubic meters while production of value added products was down 1 per cent to 831 kilo tons.
The company's turnover was up 16 per cent to Rs 21,089 crore.
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