ONGC Net Declines By 11% in Q2

Public sector oil explorer Oil and Natural Gas Corp (ONGC) dismal performance continues during second quarter as crude oil prices remained soft at the global level. Due to soft prices of crude company’s net profit during Q2 tumbled from Rs 5444 crore earned during Q2Fy15 to 4842 crore, a decline of 11%.

What really hurt company’s bottom line was the net realization for the fields that was linked to market under various joint ventures as net realization from them slumped by over 40% to just $50 /bbl. On the other hand realization from nomination fields remained at $48.83/bbl as it provided a discount of $2.41/bbl to OMC s to compensate for LPG and Kerosene subsidy. Importantly net realization was at 41.45/bbl during same period last year. Company’s subsidy payout remained as just Rs 596 crore during Q2FY16 as against Rs 13641 crore of subsidy outgo during same period last year and its impact on net profit was just Rs 329 crore .

On the topline front company’s revenue spurt by 1.1% to 20732 crore during the quarter due to marginal hike in production. Company’s crude production increases by 3% to 6.27 MT from its own as well as JV fields. On the other hand gas production also increase marginally by 0.5% to 5.356 BCM where as JV production declined by 1% to 0.346 BCM.