New Delhi: Public sector Oil and Natural Gas Corporation (ONGC) net profit on a standalone basis declined by 49.8 percent to Rs 4,152 crore for the quarter ended December 2019 due to lower oil and natural gas prices and declining production.
ONGC, in a statement on Friday, reported a net profit of Rs 8,263 crore in the same quarter a year ago. The company received $ 59.73 on the oil produced in the quarter under review, which is 10 percent lower than the year-ago quarter of 2018-19. At the same time, the price of natural gas was down 4 per cent to $ 3.23 per 1 million British thermal units. The company’s revenue fell 14.4 percent to Rs 23,710 crore in the third quarter of the current fiscal due to lower fuel prices.
According to ONGC, its production declined by one percent to 48.2 million tonnes in the quarter under review, while gas production declined by 8.4 percent to 5.875 billion cubic meters. However, the company did not give a reason for the decrease in production. Most of the company’s fields are old. In the western offshore area, production in Mumbai High and Basin is naturally declining.
According to the company, the net profit during April-December was 28 per cent in the current financial year at Rs 16,319 crore. Income decreased by nearly 10 percent to Rs 82,896 crore. ONGC’s integrated profit declined 43.7 percent to Rs 5,384 crore in the October-December quarter. The integrated profits include the earnings of subsidiaries Hindustan Petroleum Corporation (HPCL) and Mangalore Refinery and Petrochemicals (MRPL). The two companies are listed and report the results separately.
