ONGC’s third quarter net profit down five percent

February 8th, 2012 - 8:14 pm ICT by IANS  

Mumbai, Feb 8 (IANS) Oil and Natural Gas Corporation (ONGC) Wednesday reported a 4.82 percent decline in its net profit for the quarter ended Dec 31, 2011 at Rs.6,741.41 crore from Rs.7,083.23 crore in the like period of 2010-11.

The fall in net profit can be attributed to the government’s directive to the company to share the burden of under recoveries of the three oil marketing companies (OMCs) by giving them discount on crude oil.

Thus, the company’s net profit decreased by Rs.7,172 crore in the quarter under review from Rs.2,404 crore in the quarter ended Dec 31, 2010.

Gross revenues also declined by Rs.12,536 crore in the quarter from Rs.4,222 crore in the like period of 2010-11.

Net sales of the company declined by 2.5 percent at Rs.18,123.84 crore from 18586.41 crore in the like period of 2010-11.

The oil major’s total income in the period under review fell by 9.30 percent at Rs.19,475.3 crore from Rs.21,473.41 crore for the quarter ended Dec 31, 2010.

In a regulatory filing, the company said after Vedanta took over the assets of Cairn India an income of Rs.3,142 crore received from Cairn India towards royalty paid for the period of August 2009-to-September 2011 had been disclosed as an exceptional item. Without this, the profit would have been lower that what was reported, it said.

“For the period October 2011 to December 2011, an amount of Rs.627 crore has been accounted for as sales as per the entitlement interest,” the filing aded.

According to the filing, the company’s board has declared an interim dividend of Rs.6.25 per share (125 percent) amounting to Rs.5,347.18 crore at its meeting held on Jan 4, 2012, which has seen been paid.

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