Indian energy giant Oil and Natural Gas Company (ONGC) announced a 43.91% increase in its net profit in the first quarter compared to the same period last year. Production of crude oil, natural gas and value added products grew modestly, but the company reported higher net profit mainly due to higher price realization after netting a subsidy burden of Rs.9, 811 crore compared to Rs.3, 649 crore during the same period last year.
The company reported a net profit of Rs.6, 636 Crore in the first quarter compared to Rs.4, 611 crore achieved in 1st quarter last year. Turnover rose to Rs.20, 123 Crore, up 47% from Rs.13, 728 in the first quarter last year. Gross realization with respect to crude oil improved to US$ 125.84/bbl compared to US$ 71.90/bbl last year, while net realization during the same period rose to US$ 69.14/bbl from US$ 50.34 in the first quarter last year. Overall crude oil production grew marginally to 6.41 MMT from 6.38 MMT last year. Natural Gas Production rose to 5.63 BCM during three months ended June while production of value added products improved to 753,000 tonnes from 729,000 last year.
The company is set to sign a MOU with Uranium Corporation of India Ltd. (UCIL) for exploration and exploitation of Uranium. The collaboration is expected to leverage ONGC's expertise in exploration of hydrocarbons that could be used to commercially exploit Uranium in India and abroad.
Going forward, the company expects to earn better revenue from its Tripura Gas Field, wherein the company proposes to invest Rs.4376.01 Crore in 3 phases. The production and revenue generation would commence from 2008-09. The company approved an investment of Rs.580 crore for the development of the North Tapti field (Tapti Daman block) that is expected to complete by 2011.
Commenting on the quarterly results, the Chairman and Managing Director R.S. Sharma said that the company's focus on unlocking more value would yield results in the coming quarters as well, and expressed confidence on improving both E&P and financials going forward.
Meanwhile, ONGC group company Mangalore Refinery and Petrochemicals Ltd (MRPL) posted good performance in the June quarter. Net profit rose 129% mainly due to an inventory gain of Rs.655 crore net of tax on account of an increase in average crude price from about US $ 100 per barrel as of end March 2008 to US $ 129 per barrel as of end June 2008. The company's net profit grew to Rs.845 core from Rs.368 crore last year, while turnover rose 46% to Rs.10, 747 crore from Rs.7, 376 crore achieved last year.
ONGC has operations in oil & gas exploration, production and refining. The company secured its position in the latest Fortune Global 500 listing of World's largest Corporations by turnover. The company improved its rank to 335 from 369 in the previous year.
On the BSE, the company stock is quoting at Rs.977.50, down 3.46% over the previous day's close.
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