New Delhi
The net profit of Oil and Natural Gas Corporation (ONGC) fell over 34 per cent in June quarter on decline in oil prices and lower output, the firm said.
Net profit of Rs 10,015 crore in April-June (first quarter of current 2023-24 fiscal year) compared to Rs 15,206 crore earning in the same period last year, the company said in a statement.
ONGC, India’s top crude oil and natural gas producer, earned $ 76.49 for every barrel of crude oil it produced and sold from nomination fields against a net realisation of $ 108.55 per barrel last year.
Oil prices globally had risen sharply in April-June 2022 after Russia’s invasion of Ukraine led to uncertainties over supply and demand.
Crude oil pumped out of below ground and seabed is refined in refineries to produce petrol, diesel and other fuels. Natural gas is used to generate electricity as well as burn kitchen stoves and run automobiles (CNG).
Gross revenue fell 20 per cent to Rs 33,814 crore.
ONGC said crude oil production was 3.2 per cent lower at 4.6 million tonnes, while gas output fell 3.3 per cent to 5.04 billion cubic meters.
The reduction in ONGC’s production in Q1 FY 2023-24 was due to shutdown in Panna-Mukta offshore platforms for commissioning of new crude oil pipeline to modernise its evacuation facilities, post taking over from JV partners, cyclone Biparjoy (June 2023) disrupting offshore and onshore production and crude oil wells in southern India had to be stopped as a refinery there stopped receiving oil, following a leakage in their pipeline, the statement said.
