State-owned Oil and Natural Gas Corp (ONGC) reported a 19% rise in net profit for the April-June quarter on realising higher crude oil prices.
Net profit of Rs 4,782 crore was higher than Rs 4,016 crore logged in the year-ago period, ONGC said in a statement.
ONGC, which had almost flat crude oil production in Q1, had a net realisation of $47.51 per barrel as compared to $40.33 a barrel in Q1 2013-14. This was despite the subsidy outgo rising 4% to Rs 13,200 crore.
Upstream oil producers like ONGC have to bear a portion of the losses that fuel retailers make on selling diesel, domestic LPG and kerosene at government controlled rates. This they do by extending discounts on crude oil they sell to retailers.
Exploration-related write-offs during the quarter, on account of dry wells, more-than-doubled to Rs 3,828 crore.
ONGC said its gross realisation was $109.48 per barrel in Q1, up 6.23% from $103.06 in April-June 2013.
After paying for fuel subsidy, it got $47.51 a barrel. The subsidy discount was $62.33 per barrel in Q1 as compared to $62.73 last year.
The company said its net profit should have been higher by Rs 7,396 crore but for this subsidy discount.
ONGC said its crude oil production was almost flat at 5.1 million tons while gas output dipped 2.11% to 5.775 billion cubic meters.
Sales rose 13.12% to Rs 21,813 crore.
The company made six new oil and gas fields in western offshore and KG basin.
ONGC said it sold the first cargo of around 1.2 million barrels of crude oil from its Carabobo project in Venezuela to Reliance Industries' Jamnagar refinery. The cargo arrived at Jamnagar on July 7, the statement said.
"The crude was shipped by Bunga Kasturi Dua (vessel) from Venezuelan port to Sikkar, Gujarat in approximately 40 days," it said.
ONGC Videsh Ltd, the overseas arm of the state explorer, holds 11% interest in the Carabobo project. Oil India Ltd and Indian Oil Corp (IOC) hold 3.5% stake each in the project while Spain's Repsol has 11% interest.
Venezuelan national oil company PdVSA has the balance 71%. - PTI