ONGC net profit crashes 31% to Rs 1378 crore in Q3, shares slip

State-owned Oil and Natural Gas Corporation’s (ONGC) net profit tumbled 31% to Rs 6,138.14 crore in Q3 December 2020 as against Rs 8,889.77 crore in Q3 December 2019. Current tax expense for the quarter jumped 14.6% to Rs 2,467.24 crore as against Rs 2,153.61 crore paid in Q3 December 2019.

ONGC posted a 67.4 per cent year-on-year decline in standalone profit to Rs 1,378 crore in the third quarter of the current financial year. The standalone net profit stood at Rs 4,226 crore in the year-ago period. According to the company’s regulatory filing to BSE, the company’s standalone revenue from operations slipped 28 per cent in the third quarter to Rs 17,023.80 crore, compared to ₹ 23,710.05 crore in the year-ago period.

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Despite countrywide lockdown due to COVID-19 pandemic, ONGC has almost reached last year’s production levels in case of crude oil from its operated blocks. The company’s quarterly performance was impacted by crude oil and natural gas prices due to the COVID-19 pandemic, as well as volatile global crude oil and natural as markets.

Crude oil production during the quarter declined 3.3% from a year earlier. Gas output shrank 6%.

On Friday, February 12, shares of ONGC settled 2.46 per cent lower at ₹ 97 on the BSE. The shares of ONGC had opened the trading session at ₹ 99 on the BSE, touching an intraday high of ₹ 99.35 and a low of ₹ 96.55.

Shares of ONGC slipped 0.67% at Rs 96.35 on BSE. ONGC is India’s largest integrated oil and gas company. ONGC is 60.41% owned by the Government of India as on 31 December 2020.