The country’s main oil exploration company Oil and Natural Gas Corporation on Monday said its net profit for the quarter-ended June rose 44 per cent from a year ago, helped by better revenue realisation on account of higher crude prices.
However, the company has not gained in efficiency as its net margin — net profit as a percentage of net sales — dropped to 33 per cent in the April-June quarter from 33.7 per cent in the same period a year ago. The spike in crude prices has benefitted ONGC.
“The average net realisation for June 2007 stood at $54 per barrel and we estimate it at $65-70 per barrel for June 2008,” said Rohit Nagraj, oil and gas analyst at Angel Broking.
ONGC shares rose 3 per cent to Rs 1,012 on Monday.
The company’s profit in the April-June quarter stood at Rs 6,636 crore against Rs 4,610 crore a year ago. Compared to the
January-March quarter, when the company was hit by under-recoveries, profit in the latest quarter is significantly higher at 152 per cent.
Quarterly net sales for the company crossed Rs 20,000 crore for the first time, rising 46.5 per cent to Rs 20,052 crore.