Oil & Natural Gas Corpn has reported 24 per cent increase in net profit for the first quarter of the current fiscal. The companys net profit rose to Rs 4,119 crore from Rs 3,319 crore in the corresponding previous period. The increased burden of subsidy sharing had a negative impact of Rs 3,102 crore (Rs 1,748 crore) on the net profit figure. ONGC earned net profit for the period under review after providing for tax liability of Rs 2,176 crore and subsidy burden of Rs 5,120 crore (Rs 2,876 crore). Turnover stood at Rs 14,677 crore (Rs 10,954 crore), up 34 per cent, mainly due to higher price realisation from crude oil, natural gas and naphtha, and a marginal increase in sales.
The subsidy is given to the oil marketing companies in the form of discounts on crude oil, LPG and SKO to offset their under-realisation on sale of kerosene through the public distribution system (PDS). In 2004-05, the companys total subsidy burden amounted to Rs 4,104 crore, which rose to Rs 11,956 crore in 2005-06.
Crude oil production remained flat at 6.48 million tonnes. Natural gas production went up 1.4 per cent to 5.782 billion cubic metres (BCM) from 5.704 BCM earlier. The company reported 3.5 per cent increase in net sales of natural gas to 4.741 BCM (4.581 BCM).
The company also announced that its board has approved issue of bonus shares in the ratio of 1:2 - one bonus share for two equity shares held - by capitalisation of reserves.
It will seek shareholder approval for the bonus issue at the AGM.
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| Posted : 7/27/2006 |
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