ONGC net profit rises nearly seven-fold in Q1 to Rs 6,846 crore

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Oil and Natural Gas Corporation (ONGC) reported a near sevenfold rise in consolidated profit to Rs 6,846.73 crore for the first quarter of financial year 2021-22 (Q1FY22). The consolidated profit was Rs 1,085.05 crore in the corresponding quarter last year.

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.

“However, the revenue for the quarter ended June 30, 2020 were impacted by low crude oil and natural gas prices due to the Covid-19 pandemic and volatile global crude oil and natural gas markets. Accordingly, the same are not comparable with those for the quarter ended June 30, 2021,” ONGC said.

During the quarter under review, the net realisation per barrel of crude oil produced by ONGC from nominated fields rose to $65.59 a barrel.

This was up from $28.87 a barrel in Q1FY21.

Total crude oil production during the quarter fell by 4.8 per cent to 5.395 million tonnes. Gas production also fell 4.3 per cent to 5.309 billion cubic metres.