NEW DELHI: Oil and Natural Gas Corporation (ONGC) on Thursday reported a 6 per cent rise in its net profit at Rs.5,388.77 crore in the quarter ended September 30 against Rs.5,089.64 crore in the same quarter in the previous year despite higher under recovery discount.
Giving this information here, ONGC Chairman and Managing Director R. S. Sharma said sales rose to Rs.18,238.98 crore during the quarter under review from Rs.15,134.04 crore a year ago.
ONGC said it paid Rs.3,019 crore towards fuel subsidy in the quarter under review, as against Rs.2,630 crore in the second quarter of last fiscal.
The company's net realisation on crude sales was $62.75 a barrel after giving refiners IOC, BPCL and HPCL a discount to make up for one-third of their loss on sale of fuel below cost. Its net realisation in the second quarter of last year was $56.41 a barrel.
ONGC's gross realisation (pre-subsidy discount) was $79.21 a barrel as agaisnt $70.50 a barrel in the year ago period.
Mr. Sharma said the company would be ready for the stake sale by the last quarter of the current financial year. “We have appointed global consultants for third-party certification of ONGC's reserves,'' he said.
DeGolyer & MacNaughton (D&M) and Gaffney, Cline & Associates (GCA) are the two auditors appointed for the purpose.
The government plans to sell 5 per cent of its shares in the company in March 2011. “We are ready for the follow-on-public (FPO) offer but not before the first quarter of the 2011 calendar year,'' he remarked.
Mr. Sharma said the company had not put any pre-condition for approving Cairn Energy selling stake in Indian unit to Vedanta Resources. “We have not put any pre-condition. No two issues have been attached to this,'' he told reporters.
“These issues are not related,'' Mr. Sharma said, referring to royalty payment and the pre-emption right. He said the company paid Rs.319 crore royalty in excess of its share of crude oil produce during the July-September quarter. The royalty-liability makes the Rajasthan project a losing preposition for ONGC.
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