ONGC posts 28% jump in Q3 net

ONGC posts 28% jump in Q3 net Despite heavy burden of subsidy, Oil & Natural Gas Corp (ONGC) on Thursday reported an impressive increase in its quarterly net profit as rupee depreciation helped it realize more revenues.

The state-run energy giant announced that its net profit increased 28 per cent year-on-year to Rs 7,126 crore in the October-December quarter of 2013. In the October-December quarter of 2012, the company had pocketed a net profit of Rs 5,563 crore.

In the quarter under review, the company paid Rs 13,764 crore to help retailers sell diesel and LPG at subsidized rates. The figure represents an increase of 10.7 per cent form Rs 12,433 crore paid in the year-ago period.

Crude oil production in the quarter under review remained flat at 6.1 million tones, while natural gas production slipped marginally to 6.285 million cubic metres.

ONGC Chairman & Managing Director Sudhir Vasudeva said, "Despite heavy load of subsidy, profits registered a good growth mainly due to rupee depreciation."

The oil and gas producer gets paid for the fuels it produces in U. S. dollars and depreciation in the value of rupee against the American currency brings in more revenues for it. The average exchange rate in October-December quarter was Rs 62.03, as compared with Rs 54.14 in the year-ago period.

ONGC made four oil and gas discoveries during the October-December quarter. With domestic gas prices scheduled to rise from $4.2 per mBtu to more than $8 per mBtu from April this year, ONGC has plans to develop discoveries on fast track.