Profits fell 15.6 percent from the previous June quarter when it had reported a net profit of Rs 15,205.85 crore.
The company’s gross bill for crude oil produced by the company increased 37.7 percent in the quarter to USD 95.49 per barrel, compared to USD 69.36 per barrel last year.
The state-owned ONGC sells crude oil, which is refined in refineries to produce gasoline, diesel and other petroleum products, at international reference rates that skyrocketed after the Russian invasion of Ukraine.
However, the government introduced a new tax on July 1 to wipe out the gains from the global rise in energy prices.
The tax, which is adjusted every 15 days according to changes in global oil prices, was as much as USD 40 per barrel when the tax was introduced.
The company also realized a higher price of USD 6.10 per million UK thermal unit price for natural gas it produced in July-September, compared to USD 1.79 a year ago.
Revenue increased by 57.4 percent to Rs 38,321 crore. ONGC had the highest quarterly net profit ever recorded by an Indian company in July-September 2021 after opting for lower income tax rather than giving up exemptions.
As a result, the corporate income tax rate came to 22 percent plus applicable surcharges and discounts, up from the previous rate of 30 percent plus applicable surcharges and discounts.
The company said the board has approved an interim dividend of 135 per cent, or Rs 6.75 on each Rs 5 share of shares. The total payout will be Rs 8,492 crore, most of which will go to the government.
ONGC’s oil and gas production fell 2 percent in the second quarter of the current fiscal year. Oil production of 5.36 million tons in July-September is compared to 5.47 million tons a year ago. Similarly, gas production of 5.35 billion cubic meters in Q2 is compared to production of 5.46 bcm in July-September 2021.
The company said it made six discoveries in the KG basin area it owns during the current fiscal year. “Of the six discoveries reported so far during FY 2022-23, two discoveries, namely Mandapeta-60 and Kesanapalli West Deep-7, have already been monetized by ONGC,” the statement said.
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