The state-owned Oil and Natural Gas Corporation on Thursday reported a 6 per cent increase in its net profit at Rs 5,089.64 crore for the July-September quarter.
ONGC’s profits were lower by Rs 1,491 crore as it was asked by the government to pay Rs 2,630 crore fuel subsidy by way of discounts on crude oil it sells to state-run refiners. The subsidy pay-out, however, was lower than Rs 12,663 crore that the company spent in the same period in the last fiscal.
The company’s sales, however, fell to Rs 15,080.59 crore from Rs 17,407.40 crore on a dip in oil production and its prices, ONGC disclosed.
Upstream companies like ONGC have to bear the entire revenue loss that retailers IOC, HPCL and BPCL incur on selling domestic cooking gas (LPG) and kerosene at below cost.