Home Economy ONGC net falls 5.7 percent in second quarter

ONGC net falls 5.7 percent in second quarter


New Delhi : Oil and Natural Gas Corp (ONGC), India’s largest oil producer, has posted a profit after tax (PAT) of Rs.48.08 billion (about $1.07 billion) in the second quarter this fiscal, down 5.7 percent from Rs.50.98 billion (about $1.13 billion) registered in the corresponding quarter last fiscal, it said here Thursday.

According to company sources, the fall in profit was primarily due to subsidy burden and falling prices of crude.

The subsidy burden for the second quarter of this year stood at Rs.126.6 billion (about $2.8 billion), shooting 233 percent up from the subsidy load of Rs.32.99 billion (about $73.3 million) provided in the corresponding period last year.

The subsidy amount for the first quarter of 2008-09 amounted to Rs.98.11 billion (about $2.2 billion).

The Fortune 500 company reported a year-on-year growth of 13.1 percent in total sales grossing Rs.179.42 billion (about $3.99 billion) over last year’s Rs.154.64 billion (about $3.44 billion).

The sources said the ONGC board has approved the setting up of an additional processing unit at Uran at a cost of Rs.17.87 billion ($39.7 million).