ONGC net profit dips 13 per cent in Q4 due to subsidy burden

New Delhi: Oil & Natural Gas Corporation''s (ONGC) fourth quarter (quarter ended March 31, 2007) profit dipped by 13 per cent to Rs 2,681.64 crore mainly due to subsidy payouts to state-run refiners. The company''s net profit in the corresponding quarter in 2006 stood at Rs 3,085.89 crore. However, the company''s total income saw an increase of 16.35 per cent in the fourth quarter at Rs 14,575.92 crore (Rs 12,528.23 crore).

For the fiscal ended March 31, 2007 the company saw a 8 per cent increase in net profit to Rs 15,643 crore (Rs 14,431 crore) notwithstanding the highest-ever subsidy payment of Rs 17,024 crore (up from Rs 11,957 crore). The impact of subsidy on net profit was Rs 10,333 crore.

The company''s turnover for the 2006-07 fiscal stood at Rs 56,904 crore (Rs 48,201 crore). Officials said ONGC''s gross realisation in crude sales stood at $66 a barrel, but company had to shell out a discount of $22 a barrel to refiners toward subsidised fuel sales reducing the net realisation for ONGC in 2006-07 to $44 per barrel.

The company board has recommended a dividend of 310 per cent on expanded capital after bonus issue of 1:2.