Net profit in October-December rose to Rs 7,126 crore from Rs 5,563 crore a year ago, ONGC chairman and managing director Sudhir Vasudeva said.
ONGC paid Rs 13,764 crore in the third quarter to help fuel retailer sell diesel and cooking fuel at rates below cost, 10.7 per cent more than Rs 12,433 crore in the same period a year ago. The subsidy payout was near the record payout of Rs 13,796 crore in July-September quarter of this fiscal.
‘Despite heavy load of subsidy, profits registered a good growth mainly due to rupee depreciation,’ he said.
ONGC gets paid for the crude oil and natural gas it produces in US dollar and depreciation of rupee brings in more revenues for it.
The average exchange rate in third quarter was Rs 62.03 to a US dollar as compared to Rs 54.14 a year ago.
Net profit, he said, would have been higher by Rs 7,649 crore if it was not forced to pay subsidy, he said.
ONGC sold crude oil at a gross rate of $108.18 per barrel as against $110.13 in third quarter of last fiscal.
After paying for fuel subsidy, its net realisation fell to $45.98 per barrel from $47.94 a year ago. In rupee terms, however, its net realisation was Rs 2,852 per barrel in the third quarter of this fiscal (FY14) as compared to Rs 2,595 crore in last fiscal. Vasudeva said crude oil production was almost flat at 6.1 million tonnes while natural gas output fell by close to a per cent to 6.285 million cubic metres. ONGC's profit also soared because other income doubled on account of a provision writeback.
The company wrote back Rs 2,500 crore of tax provisions it made in earlier quarters on fuel subsidy it had to pay. Vasudeva said the company made four oil and gas discoveries during the third quarter. ONGC Videsh Ltd (OVL), its overseas arm has raised $2.5 billion in foreign loans to fund its acquisition of 10 per cent stake in a giant Mozambique gas field.
The company had in August last year bought US energy major Anadarko Corp’s 10 per cent stake in the Mozambique gas field for $2.6 billion. The loan it has raised will fund that acquisition.
IOC goes on selling below cost to energise India
New Delhi: Indian Oil Corp (IOC), the nation's largest oil firm, on Thursday reported a net loss of Rs 961.45 crore in the December quarter after the government paid less than half of the due oil subsidy, negating gains made from foreign exchange. IOC had posted a net profit of Rs 3,331.96 crore in the same period a year ago.
The company posted losses ‘mainly on account of higher absorption of under recoveries on sale of sensitive petroleum products,’ IOC chairman R S Butola said. IOC absorbed Rs 7,192 crore after the government did not pay full subsidy for selling diesel, cooking gas (LPG) and kerosene at rates lower than cost.
The company had lost Rs 20,697.62 crore on selling diesel and cooking fuel below cost in third quarter this fiscal. The government paid Rs 5,173 crore as cash subsidy and it got another Rs 8,261 crore from upstream firms like ONGC, leaving an unmet gap of Rs 7,192 crore, he said. But for this, the company would have posted a profit as its interest outgo on debt came down to Rs 1,262 crore from Rs 1,677 crore in third quarter last fiscal.
The firm made a exchange gain of Rs 1,133 crore as the rupee strengthened against US dollar, he said. IOC had lost Rs 1,295 crore in foreign exchange in the third quarter of last fiscal. Butola said the company currently loses Rs 7.39 a litre on diesel, Rs 35.76 a litre on kerosene and Rs 656 per domestic cooking gas (LPG) cylinder.
ONGC paid Rs 13,764 crore in the third quarter to help fuel retailer sell diesel and cooking fuel at rates below cost, 10.7 per cent more than Rs 12,433 crore in the same period a year ago. The subsidy payout was near the record payout of Rs 13,796 crore in July-September quarter of this fiscal.
‘Despite heavy load of subsidy, profits registered a good growth mainly due to rupee depreciation,’ he said.
ONGC gets paid for the crude oil and natural gas it produces in US dollar and depreciation of rupee brings in more revenues for it.
The average exchange rate in third quarter was Rs 62.03 to a US dollar as compared to Rs 54.14 a year ago.
Net profit, he said, would have been higher by Rs 7,649 crore if it was not forced to pay subsidy, he said.
ONGC sold crude oil at a gross rate of $108.18 per barrel as against $110.13 in third quarter of last fiscal.
After paying for fuel subsidy, its net realisation fell to $45.98 per barrel from $47.94 a year ago. In rupee terms, however, its net realisation was Rs 2,852 per barrel in the third quarter of this fiscal (FY14) as compared to Rs 2,595 crore in last fiscal. Vasudeva said crude oil production was almost flat at 6.1 million tonnes while natural gas output fell by close to a per cent to 6.285 million cubic metres. ONGC's profit also soared because other income doubled on account of a provision writeback.
The company wrote back Rs 2,500 crore of tax provisions it made in earlier quarters on fuel subsidy it had to pay. Vasudeva said the company made four oil and gas discoveries during the third quarter. ONGC Videsh Ltd (OVL), its overseas arm has raised $2.5 billion in foreign loans to fund its acquisition of 10 per cent stake in a giant Mozambique gas field.
The company had in August last year bought US energy major Anadarko Corp’s 10 per cent stake in the Mozambique gas field for $2.6 billion. The loan it has raised will fund that acquisition.
IOC goes on selling below cost to energise India
New Delhi: Indian Oil Corp (IOC), the nation's largest oil firm, on Thursday reported a net loss of Rs 961.45 crore in the December quarter after the government paid less than half of the due oil subsidy, negating gains made from foreign exchange. IOC had posted a net profit of Rs 3,331.96 crore in the same period a year ago.
The company posted losses ‘mainly on account of higher absorption of under recoveries on sale of sensitive petroleum products,’ IOC chairman R S Butola said. IOC absorbed Rs 7,192 crore after the government did not pay full subsidy for selling diesel, cooking gas (LPG) and kerosene at rates lower than cost.
The company had lost Rs 20,697.62 crore on selling diesel and cooking fuel below cost in third quarter this fiscal. The government paid Rs 5,173 crore as cash subsidy and it got another Rs 8,261 crore from upstream firms like ONGC, leaving an unmet gap of Rs 7,192 crore, he said. But for this, the company would have posted a profit as its interest outgo on debt came down to Rs 1,262 crore from Rs 1,677 crore in third quarter last fiscal.
The firm made a exchange gain of Rs 1,133 crore as the rupee strengthened against US dollar, he said. IOC had lost Rs 1,295 crore in foreign exchange in the third quarter of last fiscal. Butola said the company currently loses Rs 7.39 a litre on diesel, Rs 35.76 a litre on kerosene and Rs 656 per domestic cooking gas (LPG) cylinder.