Government State-owned Oil and Natural Gas Corporation (ONGC) on Monday said its net profit declined by 15 per cent in the June quarter of the current financial year. The company said that its profit has declined due to write-off of higher exploration costs. ONGC told the stock market that its net profit in the April-June quarter of the current financial year (2024-25) was Rs 8,938.10 crore, as against Rs 10,526.78 crore in the same period last year. The profit was also less than the previous quarter January-March of Rs 9,869.37 crore.
Rs 1,669.73 crore written off
ONGC wrote off Rs 1,669.73 crore spent on surveys and drilling wells for oil and gas exploration as these efforts were unsuccessful. In comparison, this figure was Rs 1,015.81 crore in April-June 2023. Operating income in the quarter under review increased to Rs 35,266.38 crore from Rs 33,814.33 crore a year ago. The higher amount written off affected the company’s profit from rising oil prices. In the June quarter, ONGC got $ 80.64 per barrel on crude oil production, while in the same period last year this amount was $ 70.64 per barrel.
Five oil and gas sites discovered
The company said in a statement that its oil production remained almost stable at 46.29 lakh tonnes. However, natural gas production declined by 3.6 percent to 4.86 billion cubic meters. ONGC said that it has discovered a total of five oil and gas sites so far in the current financial year, although the company neither gave a reserve estimate nor told about the potential production.
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