ONGC Q3 net dips 5%

State-owned explorer Oil & Natural Gas Corp (ONGC) on Wednesday reported a 5% drop in its net profit in the quarter ended December 31 as a sharp rise in fuel subsidy output offset one-time gains it made from Cairn India’s Rajasthan oilfields.

State-owned explorer Oil & Natural Gas Corp (ONGC) on Wednesday reported a 5% drop in its net profit in the quarter ended December 31 as a sharp rise in fuel subsidy output offset one-time gains it made from Cairn India’s Rajasthan oilfields.

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ONGC reported a net profit of R6,741.4 crore in the October-December quarter as opposed to R7,083.2 crore a year ago, the company said in filing to the stock exchanges.

The company said the royalty it pays not just on its 30% stake but also 70% interest of Cairn India on crude oil produced from prolofic Rajasthan block is now being treated as cost recoverable.