ONGC Q2 net profit declines 55% at Rs 2,878 crores, cites lower crude oil prices

Oil and Natural Gas Commission on Friday reported a 54.6 percent decline in its standalone net profit in the second quarter for the Fiscal year 2021 on a year-on-year basis. The standalone net profit fell to Rs 2,878 crore against a profit of Rs 6,336 crore recorded during the corresponding year-ago period. The gross revenues declined by 30.9 per cent to Rs 16,917 crore against Rs 24,493 crore in the year-ago period.

“The revenue and PAT for Q2 and H1 of FY21 have declined as compared to the corresponding period of FY20 mainly due to lower crude oil price realisation,” the company said in a statement.


“Lower gas prices also contributed to lower topline and bottom line,” it added.

As per the company’s statement, it has also noticed an ‘exceptional’ item towards impairment loss of Rs 1,238 crore in the second quarter to factor into estimated future crude oil and natural gas prices. “This impairment loss may be reversed in future as and when there is an increase in crude oil and gas price. However, PAT for Q2FY21 has increased by 480 per cent i.e. from Rs 496 crore in Q1 FY21 to Rs 2,878 crore in Q2 FY21 due to recovery of crude oil price,” the statement read.

The company reported a rise of 4.3 percent in its net profit for the second quarter to Rs 5,801 crore from Rs 5,560 crore on a  consolidated Y-o-Y basis.