ONGC reports Q1 net profit of Rs.6,078 crore

New Delhi : Public sector oil and gas producer ONGC Saturday reported a net profit growth of 48.4 percent at Rs.6,078 crore for the quarter ending June 30, 2012.

The net profit for the corresponding period of the previous fiscal stood at Rs.4,095 crore. For the preceeding three months ending March 2012, the company recorded a net profit of Rs.5,645 crore.

The company declared a net profit of Rs.25,123 crore for the year 2011-12.

ONGC’s sales revenue in the first quarter of the current fiscal grew 23.9 percent and stood at Rs.20,149 crore, over the Rs.16,268 crore earned in the corresponding quarter of 2011-12.

The oil producing giant also announced that in terms of the government’s decision, the company shared under-recoveries of the oil marketing companies (OMC) for the quarter ending on June 30 by allowing discount in prices of crude oil, public distribution system (PDS) kerosene and domestic LPG.

The impact of the gross discount of Rs.12,346 crore on profit came to Rs.7,149 crore for the quarter ending June 30, 2012.

The impact of under-recoveries on profit was Rs.6,878 crore for the corresponding period of fiscal 2011-12.

The impact on profit for 2011-12 from under-recoveries discount of Rs.44,466 crore was Rs.25,535 crore.

ONGC also announced the discovery of a new pool of oil reserves in their D1 field in the western offshore basin, which according to the company may make D1 the third largest field in the area after Mumbai High and Heera.

The total initial-oil in-place (IOIP) of the new discovery is expected to be in excess of one billion barrels.

The D1 oil producing field is situated 200 km of Mumbai in deep continental shelf at a water depth of 85-90 metres.

According to ONGC, on complete development of the D1 field oil production is expected to go up to 60,000 bopd (barrels of oil per day), and the additional development programme will start yielding results from January 2014.