ONGC Q2 net up 6%; lags estimates

NEW DELHI: State-owned Oil and Natural Gas Corp today reported a 6 per cent rise in its net profit to Rs 5,388.77 crore in the quarter ended September 30.

ONGC had posted a net profit of Rs 5,089.64 crore in July-September quarter of 2009-10 fiscal, the company said in a statement.

Sales rose to Rs 18,238.98 crore in Q2 of current fiscal from Rs 15,134.04 crore a year ago.

ONGC said it paid Rs 3,019 crore towards fuel subsidy in the quarter under review, as against Rs 2,630 crore in the Q2 of last fiscal.

The government, which deregulated gasoline prices in late June, had said diesel prices too would be eventually freed.

The company's net realisation on crude sales was $62.75 a barrel after giving refiners IOC, BPCL and HPCL a discount to make up for one-third of their loss on sale of fuel below cost. Its net realisation in the Q2 of last year was $56.41 per barrel.

ONGC's gross realisation (pre-subsidy discount) was $79.21 per barrel as opposed to $70.50 a barrel in the July-September quarter a year ago.

The government allowed ONGC to charge higher prices for the gas produced from June and this was the first full quarter of higher gas prices.