ONGC PROFIT RISES 11.9%
State-owned petroleum producer Oil and Natural Gas Corporation (ONGC) on July 28, 2011 reported an 11.9% jump in net profits for the first quarter ending June 30 at R4,095 crore on higher crude oil and natural gas sales. The profits, however, were severely constrained as ONGC paid double the oil subsidy to refiners than it did a year ago to protect consumers from the rising oil price. ONGC stated here that it gave discounts to refiner-cum-retailers IOC, HPCL and BPCL on crude oil sales to the tune of R12,046 crore in the June quarter, which is 118.4% higher than what was given in the same period a year ago. ONGC contributes to oil subsidy to the consumer by giving crude at a discounted price to refiners. Due to this discount, ONGC realised only $48.76 a barrel of crude oil in the quarter, while the Indian basket of crude has been ruling at an average $113 a barrel. Sales revenue jumped 18.7% in the first quarter to R16,268 crore as the company exceeded production and sales targets for crude and natural gas. ONGC, on a stand alone basis, produced 5.5 million metric tonne (MMT) of crude and 5.6 MMT of gas in the quarter. ONGC board has also notified two new hydrocarbon discoveries, one in the Assam & Assam Arakan basin and the other in the Western onshore basin. ONGC has tied up with Singareni Collieries Company Ltd (SCCL) on underground and surface coal gasification and on coal bed methane, the company said. These clean energy projects would rely on coal linkage to be provided by SCCL. “The agreement aims at promoting clean energy technology to utilise the high ash content indigenous coal in an environment friendly manner,” ONGC stated after the board meeting.
SOURCE: www.financialexpress.com
CAclubindia
