HomeBUSINESSONGC’s Q1 net profit rises over 3-fold to ₹15,206 cr

ONGC’s Q1 net profit rises over 3-fold to ₹15,206 cr


NEW DELHI : State-run ONGC on Friday reported a 250% rise in its standalone net profit for the first quarter (April-June) of FY23 at 15,206 crore.

During the corresponding period of last fiscal, the energy major had reported a net profit of 4,335 crore.

Its revenue during in the last quarter rose 83.8% on a year-on-year basis to 42,321 crore.

The high revenues came on the back of elevated crude oil and gas prices amid the Russia-Ukraine crisis and the supply concerns.

Its net realization from the nominated fields was $108.54 a barrel during the quarter, against $65.59 a barrel during the same quarter last fiscal. Further, the realization from the joint ventures was $109.60 a barrel, against $66.86 a year ago.

During the quarter under review, ONGC declared two onland discoveries in its operated acreages. Out of these, one is a new prospect (Kankpul-1 in NELP-VII JV block WB-ONN-2005/4) in West Bengal and the other is new pool (Mandapetta-60 in KG Onland) in Andhra Pradesh.

For the current quarter, the company’s profits may be impacted given the windfall tax imposed by the Centre on sale of domestic crude oil. With effect from July 1 Centre imposed a duty of 23,250 per tonne on sale of domestic crude prices amid high profits incurred by oil producing companies due to surging crude oil prices.

The tax has, however, been revised twice since its imposition. Currently it stands at 17,750 per tonne. However, given recent decline in crude prices, expectations have increased that the government would further lower the tax.

Shares of the company surged on Friday. They ended at 139.25 on the BSE, higher by 4.94% from its previous close.

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