By IANS
New Delhi : State-owned petroleum major Oil and Natural Gas Corp (ONGC) has attributed its lower quarterly net profit to a higher subsidy payout in the wake of the surge in the international crude oil prices.
“The company’s net profit in the third quarter is down due to unprecedented high subsidy burden,” ONGC said in a statement issued to explain its poor financial performance.
According to ONGC, it paid Rs.60 billion ($1.51 billion) in the quarter Oct-Dec 2007 as its share in the petroleum sector subsidy to Indian Oil Corp Ltd, Hindustan Petroleum Corp Ltd and Bharat Petroleum Corp Ltd as compared with Rs.22 billion ($556 million) in the corresponding period previous year.
“The pre-discount realisation for the third quarter is $91.19 per barrel and post-discount realisation is $54.52 per barrel,” ONGC said.
ONGC’s net profit in the third quarter (Oct-Dec) of fiscal 2007-08 has declined by Rs.3 billion ($76 million) to Rs.43.7 billion ($1.1 billion) compared to the corresponding period the previous year, the company said earlier in the day while announcing its quarterly financial results.
On a year-on-year basis, the company’s total income in the same quarter was lower by Rs.2.8 billion.
“The company has posted a net profit of Rs.43.66 billion for the quarter ended Dec 31, 2007 as compared to Rs.46.68 billion for the quarter ended Dec 31, 2006,” said ONGC, while announcing its quarterly financial results.
“The total income has decreased from Rs.162.69 billion for the quarter ended Dec 31, 2006 to Rs.159.83 billion for the quarter ended Dec 31, 2007,” it said.