ONGC Q4 net falls 40% to Rs 3,387 cr
New Delhi: State-owned Oil and Natural Gas Corp (ONGC) today reported a 40% drop in its March quarter net profit as oil and gas output fell while payments on account of statutory levies rose sharply. Net profit in January-March at Rs 3,387 crore was 40% lower than Rs 5,644 crore in the same period a year ago, ONGC Chairman and Managing Director Sudhir Vasudeva told reporters here.
Oil output fell to 5.62 million tonnes in Q4 from 5.78 million tonnes a year ago while natural gas production declined to 5.58 billion cubic metres (bcm) from 6.03 bcm in January-March 2012, he said. Also, cess oil on crude oil as well as royalty payments rose by Rs 1,043 crore in the quarter, ONGC Director (Finance) A K Banerjee said adding an additional provision of Rs 1,698 crore was made for increased operating expenditure because of employee benefit scheme.
The government had last fiscal raised cess on crude oil to Rs 4,500 per ton from Rs 2,500 previously. Also, ONGC had to shell out more royalty on crude oil produced from Cairn India's Rajasthan block. ONGC, which holds 30% interest in the Rajasthan block, is the licence of the block and is liable to pay royalty on 100% of crude oil.