ONGC Q1 net profit increases by 800% in Q1 FY22

State-owned Oil and Natural Gas Corporation (ONGC)’s  net profit soared by nearly 800 per cent in the first quarter of the current fiscal after more than doubling of oil prices compensated for a fall in production.

Net profit in April-June at Rs 4,335 crore was 772.2 per cent higher than Rs 497 crore in Q1 of previous fiscal when demand as well as price had plummeted due to coronavirus-related lockdown, the company said in a statement. Gross revenue rose 77 per cent to Rs 23,022 crore.

The firm earned $ 65.59 for every barrel of crude oil it produced and sold in the first quarter of the 2021-22 fiscal as compared to $ 28.87 per barrel realisation in April-June 2020.

The company produced nearly 5 per cent less crude oil at 5.4 million tonnes in the quarter while natural gas output was 4.3 per cent lower at 5.3 billion cubic metres.

Of the oil production, ONGC produced 4.6 million tonnes from fields it operates and another 0.55 million tonnes from those in joint ventures with other partners. Its own production was down 4.2 per cent and joint venture output fell 2.8 per cent.

Consolidated total income during the period under review also rose to Rs 1,09,301.82 crore, up from Rs 63,694.14 crore last year. The consolidated results include proceeds from ONGC’s subsidiary, Hindustan Petroleum Corporation (HPCL).

On a standalone basis, gross revenue stood at Rs 23,022 crore in Q1, up from Rs 13,011 crore last year. Standalone Net profit rose to Rs 4,335 crore, up from Rs 497 crore in Q1FY21.

Profit from exploration and production, ONGC’s core business area, stood at Rs 6,225.29 crore in Q1, up from Rs 1,557.2 crore last year. In a statement to the exchanges, ONGC said the company has assessed the possible impact of continuing Covid-19 on the basis of internal and external sources of information and expects no significant impact on the continuity of operations, useful life of property plant and equipment, recoverability of assets, trade receivables etc, and the financial position of the company on a long-term basis.

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