Low prices, output pull ONGC Q1 net down 21 per cent

The sales of the oil and gas explorer dropped 21.41 per cent to Rs 17,784 crore in Q1 of current fiscal year.

By: ENS Economic Bureau | New Delhi | Published:September 8, 2016 3:07 am

With the fall in crude oil and gas prices state-run explorer ONGC saw its net profit during April-June FY17 drop by 21 per cent to Rs 4,233 crore against Rs 5,368 crore in the same quarter previous year. The sales of the oil and gas explorer dropped 21.41 per cent to Rs 17,784 crore in Q1 of current fiscal year.

ONGC did not share any oil subsidy burden in the first quarter of FY17. However, its net realisation on crude oil sales dropped to $46.10/barrel during the first quarter of FY17 against $59.08 a barrel in the year-ago period. In rupee term, ONGC got 17.78 per cent lower price at Rs 3,085 per barrel in April-June FY17 against Rs 3,752 a barrel in the corresponding quarter previous year. In the first quarter of FY16, ONGC had forked out Rs 1,096 crore to compensate state-run OMCs for selling fuel below market cost.

In the first quarter of FY17, ONGC’s crude oil output dropped 2 per cent to 6.01 million tonnes and natural gas production went down by 5.55 per cent to 5.494 billion cubic meters. ONGC said that it has reported seven oil and gas discoveries during April-June FY17. FE