ONGC net profit flat, hit by floods

State-controlled company has posted a net profit of Rs 4,174 crore for second quarter of the current financial year.

State-controlled behemoth Oil and Natural Gas Company (ONGC), hit by floods in its gas facilities and burdened by subsidies, has posted a net profit of Rs 4,174 crore for the second quarter of the current financial year compared to Rs 4,138 crore in the corresponding period last year - indicating a growth of less than one percent.

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However, turnover during the period stood at Rs 14,146 crore as against Rs 12,728 in the second quarter of 2005-06, an increase of 11 per cent, the company said in a statement.

Natural gas production was down due to floods affecting operations at ONGC’s Hazira gas processing unit. The plant was completely shut down for 10 days from August 7 this year and then picked up normal production pace in stages before restoring full production on September 8.

The board of directors, which met to approve the financial results, gave their nod to revised capital expenditure outlay of Rs 16,522 crore in 2006-7 against the approved budget estimate of Rs 14,354 crore. The capital outlay for the budget estimate 2007-08 has been further increased to Rs 18,359 crore. The increase is mainly due to increased expenditure on exploration.

Crude production in the first half of the financial year increased to 12.86 million tonnes from 12.29 MT last year, an increase of 4.6 per cent. Net profit in H1 was Rs 8,293 crore, up 11 per cent from Rs 7,457 crore in the previous year.