ONGC pre-tax profit down 82% to Rs 2,012 cr in Q1 on low crude, gas prices

State-run Oil and Natural Gas Corporation (ONGC) has posted 82 per cent decline in its consolidated profit before tax (PBT) for the first quarter of 2020-21 to Rs 2,012.2 crore, compared to Rs 11,450.8 crore during the April to June period of the previous financial year.

According to the company, the financial results for the quarter are impacted by very low realised crude oil price due to the Covid-19 pandemic, lower gas price and also by the volatile global crude oil markets. The gross revenue for the quarter was seen at Rs 62,496 crore, down 43 per cent compared to Rs 1,09,546 crore during the first quarter of FY20. The net realisation of crude from nominated fields for the April to June period was down 56.7 per cent $28.72 a barrel as against $66.32 a barrel for FY20. Crude price realisation from joint ventures also dropped 55.7 per cent to $29.6 a barrel.

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“The company continued producing and supplying crude oil and natural gas to its customers during lockdown period. Offtake of crude oil by refineries is not affected, though there has been a reduction in gas production due to less off take by some customers causing a marginal reduction in gas sale, which has been now restored to normal levels with gas demand increasing to pre-Covid-19 levels after relaxations in lockdown and gradual opening of industries and various customers,” the company said in a statement.

Despite lockdown, the company’s crude oil production was seen marginally up by 0.1 per cent at 4.799 million tonne during the quarter, compared to 4.792 Mt during the first quarter of the last financial year. However, the total crude oil production including condensate and joint ventures declined 3.5 per cent to 5.7 MT as against 5.9 MT during the same period last year. Hit badly by reduced offtake, gas production was down 14 per cent to 5.5 billion cubic meter (bcm), compared to 6.4 bcm during the same quarter in 2019-20.