Up Goes Oil Prices, ONGC Profits are Significantly Up

On the backdrop of higher oil prices, State-owned Oil and Natural Gas Corp (ONGC) posted its net profit of Rs 5,915.12 crore, a jump of 37 percent in three months to March 31, 2018. The net profit in the fourth quarter of 2017-18, the highest profit in last 17 quarters, was higher than Rs 4,340.18 crore net in the same period of the previous fiscal, according to the company.

Besides, the board of directors of ONGC recommended a final dividend of Rs 1.35 per share (27 percent). This is in addition to the interim dividend of Rs 5.25 per share declared in two phases previously. The stock markets are witnessing high action regarding ONGC stocks and this action is likely to continue for next few days.

The oil and gas major realised $66.71 for every barrel of crude oil it produced from nominated fields, up from $54.91 a barrel it got in January-March 2017. Gas price realisation was also up 15.6 percent at $2.89 per million British thermal unit. ONGC's oil production declined 3 percent to 6.2 million tonnes in the quarter. For the full 2017-18 fiscal, net profit was up 11.4 per cent at Rs 19,945 crore. However, the turnover in the fourth quarter rose 5 per cent to Rs 27,703.54 crore.

The company made 12 oil and gas discoveries in the year, half of them were on land. Out of the six onland discoveries, two were monetised during the year itself, the statement said without giving details. “In FY18, ONGC has registered an RRR in excess of one for the 12th consecutive year. This reflects ONGC's strong exploratory record over the years,” it said.