ONGC Q2 net down 31 per cent at Rs5,897 crore

Oil and Natural Gas Corp (ONGC) has reported a 31 per cent year-on-year decline in its fiscal second quarter net profit to Rs5,896.57 crore, following a big jump in its subsidy sharing.

The state-owned oil and gas explorer had reported a net profit of Rs8.642.23 crore in the July-September 2011-12 quarter, the company said in a statement.

An over 115 per cent jump in subsidy payout dented ONGC's profit by Rs7,103 crore, which pulled down its revenue for the quarter by 12.5 per cent to Rs19,853 crore.

Announcing the results, company chairman Sudhir Vasudeva said, ''The sharp increase in subsidy burden is the single reason behind the drop in profits''.

Net sales of ONGC dropped to Rs19,768.18 crore from Rs22,616.32 crore in second quarter of the previous financial year.

ONGC realised $46.80 on every barrel of crude oil after giving discount of $63.05 to oil marketing companies (OMCs). The company had realised $82.62 per barrel of crude after discount of $33.24 per barrel during the similar quarter of the previous fiscal.