ONGC Q3 cuts halves in the fall of oil, gas prices, production

NEW DELHI: The State Corporation of Oil and Natural Gas () reported on Friday half of its net earnings for the December quarter after facing the double blow of the fall in oil and gas prices and a drop in production.

The independent net profit in October-December at Rs 4,152 million was 49.8 percent lower than the net profit of Rs 8,263 million in the same period last year, the company said in a statement.

The company obtained a 10% lower price at $ 59.73 for the crude oil it produced and a 4% lower rate for natural gas at $ 3.23 per million British thermal unit.

Lower oil prices led to revenues falling 14.4 percent to Rs 23.710 crore in the third quarter of the current fiscal year.

ONGC said oil production was 1% lower at 4.82 million tons in the October-December quarter, while gas production experienced a 8.4% reduction at 5.875 million cubic meters.

He gave no reasons for the fall in production. Most of the fields that it operates are old and have already passed their best moment. There has been a natural decline in production in fields such as Mumbai High and Bassein in the west coast.

ONGC said it has made 10 oil and gas discoveries in the current prosecutor. These include six new perspectives and four extensions of previous findings.

The discoveries include oil and gas findings at Mumbai High and a gas discovery in the KG Onland block.

For April-December, the company reported a 28 percent drop in net earnings to Rs 16,319 million rupees and a 10 percent drop in revenue to Rs 82,896 million rupees.

Consolidated earnings, after including earnings from listed subsidiaries such as Hindustan Petroleum Corp Ltd (HPCL) and Mangalore Refinery and Petrochemicals Ltd, were 43.7 percent lower at Rs 5,384 million rupees in October-December and 35 percent lower in Rs 17,913 crore in April-December 2019.

Revenue was 6.7 percent lower at Rs 109,443 crore in the third quarter and 6 percent lower at Rs 3.20,512 crore in the first nine months of the current tax.

Both HPCL and MRPL are listed and their earnings are reported separately.