ONGC's Q1 Net Profit Drops 21%

India’s biggest state owned energy company Oil and Natural Gas Corporation (ONGC) saw net profit drop 21% in the first quarter of fiscal year 2016-17 (Apr-Mar) as oil prices remained depressed.

The company reported a net profit of rupees 42.33bn ($0.64bn) in the quarter under review compared with rupees 53.68bn in the year-ago period. Gross revenue was rupees 177.84bn as against rupees 226.28bn.

Net crude oil price realisation was $46.10/b compared with $59.08/b in the first quarter of last fiscal. Gas price realisation was $3.06/mn Btu vis-à-vis $4.66/mn Btu in the year ago period.

ONGC notified seven discoveries in Q1 and total eight so far in FY 2016-17. Crude oil output fell to 6.34 mt in the June quarter compared with 6.48 mt last year. Similarly, its gas production was down 5.6% to 5.49bn m³.

Shardul Sharma