Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Bloomberg Quint.
Oil and Natural Gas Corp.’s quarterly profit rose nearly sixfold as its revenue and other income increased.
Net profit rose 480% quarter-on-quarter to Rs 2,878 crore in the three months to Sept. 30, according to the company’s exchange filing. That compares with the Rs 2,259-crore consensus estimate of analysts tracked by Bloomberg.
Revenue rose 30% quarter-on-quarter to Rs 16,917 crore. Analysts had pegged the metric at Rs 17,171 crore. Other income rose 412% to Rs 2,235 crore.
ONGC Q2 Results 2020-21: Key Highlights (QoQ)
- Operating profit rose 46% to Rs 6,989 crore.
- Operating margin expanded to 41.3% from 36.7%.
Crude oil prices rose by 26.7% in the second quarter to $43.1 per barrel.
ONGC’s oil and gas production volumes was expected to take a hit if disruptions due to Covid-19 pandemic persisted. However, with its KG 98/2 project in Krishna-Godavari basin coming onstream, gas production volume is expected to rise in the future. ONGC’s value-added product capacity may increase once it finishes upgrading its Hazira plant in Gujarat.
The company has lowered its capex guidance for FY21 by 15% to Rs 260 billion owing to project delays. Bloomberg Intelligence projects that if crude oil prices remain at around $40 per barrel, it could hurt profitability and disrupt its capex plans.
On Friday, ONGC shares rose 0.56% to Rs 71.95 apiece on the NSE even as benchmark Nifty 50 ended the day 0.3% higher at 12,719.95 points. The quarterly results were declared after market hours.