India’s ONGC posts profit jump as crude price surge boosts margins


Aug 4 (Reuters) – Oil and Natural Gas Corp, India’s state-run explorer, on Tuesday ‌reported a first-quarter profit that more than ‌doubled, helped by higher crude price realisations.

• The standalone ​profit, which excludes earnings from joint ventures and overseas operations, rose to 170.34 billion rupees ($1.79 billion) for the quarter ended June 30, ‌from 80.24 billion ⁠rupees a year earlier.

• Analysts expected upstream oil companies such as ⁠ONGC to benefit from a weakened rupee and surging crude prices, as the Middle East ​conflict disrupted ​supply, pushed the ​market into deficit, and ‌supported stronger realisations.

• Average global Brent crude prices rose about 45% year-on-year in the first quarter.

• ONGC’s crude oil price realisation rose 50.4% to $99.45 per barrel, from $66.13 per barrel ‌a year ago.

• The ​company’s net profit margin improved ​to 36.66% ​from 25.07% a year ago.

• ONGC’s ‌revenue from operations rose 45.2% ​to 464.60 ​billion rupees in the quarter, despite a narrow 3.4% drop in production.

• Total ​expenses rose ‌13.4% to 254.74 billion rupees.

($1 = 95.3775 Indian ​rupees)

(Reporting by Anuran Sadhu in Bengaluru; ​Editing by Maju Samuel)



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