ONGC has reported a 14.2 per cent increase in net profit at ₹5,460 crore for the first quarter of 2015-16. Net profit in the same quarter last year was ₹4,782 crore.
ONGC’s Chairman and Managing Director DK Sarraf said the increase in net profit came due to the lower subsidy burden on the company. “Whatever the international crude oil price, the subsidy impact has come down which has helped our net realisations. My gut feeling is crude oil will remain suppressed for some a couple of more years,” he said.
The company’s net realisation was $58.92 a barrel compared to $47.15 a barrel in the same quarter last year. Net realisation takes into account the discount offered to oil marketing companies for selling sensitive products at below market rates.
The company’s gross revenue also increased 4.3 per cent to ₹22,868 crore (₹21,917 crore).
Despite the low crude oil prices, ONGC plans a $6-7 billion investment to develop its East Coast block of KG-DWN-98/2 in the Krishna Godavari basin.
During the quarter, the company’s total crude oil production increased 1.3 per cent to 6.136 million tonnes while natural gas production fell 3.6 per cent to 5.818 billion cubic metres.
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