State-run Oil and Natural Gas Corporation (ONGC) on Thursday reported a straight fourth drop in its quarterly net profit as lower global crude oil prices nullified gains accruing to the company on account of a decline in the subsidy burden.
ONGC’s net profit for the quarter April-June 2009 posted a 27% decline at Rs 4,848 crore against Rs 6,636.3 during the same period in the previous fiscal.
ONGC’s chairman and managing director R S Sharma said ONGC gave Rs 429 crore of subsidy discounts to state refiners in Q1 compared to Rs 9,811 crore in Q1 of 2008-09 fiscal.
Profit was also lowered on reduced crude oil production in Q1. ONGC's crude output declined 4.5 per cent to 6.12 million tonnes in April-June against 6.41 million tonnes last year . The company's prime Mumbai High unit produced 4.7 per cent less crude oil at 4.25 million tonnes.
Total income of the company dipped 25.8 per cent to Rs 14,922 crore during the June quarter of the current fiscal from Rs 20,123 crore in the corresponding period in the previous year.