RELATED ARTICLES |
This has come as a damper for the government that is mulling to divest five per cent equity in the explorer to mop up nearly Rs 11,000 crore towards meeting disinvestments target.
Net profit of the government-run company dropped to Rs 6,741 crore during the third quarter of the present financial year against Rs 7,083 crore in the corresponding period previous year, ONGC said in a filing with Bombay Stock Exchange. This translates to Rs 7.88 for every share in these three months against Rs 8.28 a share in a year ago period. A Bloomberg News median profit estimate of 34 analysts had projected Rs 6,680 crore.
ONGC stocks gained 10.12 per cent this calendar year compared with 14.57 per cent rise in the BSE Sensex. The scrip closed at Rs 282.95 a share on Wednesday down 1.29 per cent from its previous trading session on the BSE.
ONGC had forked out 197 per cent more in the third quarter for compensating government-run oil marketing companies against losses incurred on selling diesel, kerosene and domestic cooking gas below market cost. The explorer sold every barrel of crude oil produced at $ 111.73. However, after paying oil subsidy, ONGC’s net realisation drastically fell to just $ 44.96 for every barrel.
The explorer paid Rs 12,536 crore as oil subsidy bill in the third quarter of ongoing year against Rs 4,222 crore in the same period a year ago. This has brought down ONGC’s net profit by Rs 7,172 crore.
ONGC drilled 6.74 million tonnes of crude oil in the third quarter of present financial year against 7.03 million tonnes in the same period last year.
At the same time, it pumped out 6.40 bcm of gas during October-December 2011 against 6.36 bcm in the corresponding three months previous year. The government-run explorer also received Rs 3,142 crore from Cairn India for its share of royalty till September 2011 for the Barmer oil field in Rajasthan. Earlier, the state-run explorer was paying royalty on Cairn India’s behalf till government asked Cairn India to pay its share of royalty while its parent UK-based Cairn Energy was selling majority stake in the explorer to Vedanta Resources.
On February 2, disinvestment secretary Mohammed Haleem Khan said that government would take a decision on selling shares in ONGC this month. The dip in net profit because of higher subsidy burden will impact investors’ sentiment.
 Limited.JPG)
Investors should not buy a
Investors should not buy a single share of ONGC otherwise they will be cheated by the Government.
The government is just cheating with the investors. The profit of ongc could be used for more exploration and our country could be self depended as far as oil is concerned rather our government is asking ONGC to compensated the Government owned oil companies. Even SEBI is not doing any thing on behalf of the small investors as because it is also owned by Govt. Strictly avoid this counter.
Post new comment