ONGC net profit slumps 30% as govt strips away gains
OIL & GAS

ONGC net profit slumps 30% as govt strips away gains

State-owned explorer Oil and Natural Gas Corporation (ONGC) reported a 30% fall in net profit for the September quarter after the government levied windfall tax to take away gains arising from a spurt in international oil and gas prices. Its net profit stood at Rs 128.26 billion, or Rs 10.20 a share, in July-September 2022-23 as compared with Rs 183.48 billion, or Rs 14.58 per share, in the same period a year back, the company said in a statement. Profit fell 15.6 per cent over the preceding June quarter when it had reported Rs 152.06 billion net profit. The company's gross billing for crude oil it produced soared 37.7 per cent to $95.49 per barrel in the quarter from $69.36 a barrel last year.

ONGC sells crude oil at international benchmark rates, which soared following Russian invasion of Ukraine. However, the government brought a new tax from July 1 to take away gains accruing from the global energy price surge.

The tax, which is moderated every 15 days in step with changes in global oil prices, was as high as $40 per barrel when it was introduced.

The company also realised a higher price for natural gas at $6.10 per million British thermal unit gas in July-September as compared to $1.79 a year back.

See also:
Shapoorji Pallonji, Bumi Armada build FPSO for ONGC
Reliance’s MJ gas condensate field to begin output this year


State-owned explorer Oil and Natural Gas Corporation (ONGC) reported a 30% fall in net profit for the September quarter after the government levied windfall tax to take away gains arising from a spurt in international oil and gas prices. Its net profit stood at Rs 128.26 billion, or Rs 10.20 a share, in July-September 2022-23 as compared with Rs 183.48 billion, or Rs 14.58 per share, in the same period a year back, the company said in a statement. Profit fell 15.6 per cent over the preceding June quarter when it had reported Rs 152.06 billion net profit. The company's gross billing for crude oil it produced soared 37.7 per cent to $95.49 per barrel in the quarter from $69.36 a barrel last year. ONGC sells crude oil at international benchmark rates, which soared following Russian invasion of Ukraine. However, the government brought a new tax from July 1 to take away gains accruing from the global energy price surge. The tax, which is moderated every 15 days in step with changes in global oil prices, was as high as $40 per barrel when it was introduced. The company also realised a higher price for natural gas at $6.10 per million British thermal unit gas in July-September as compared to $1.79 a year back. See also: Shapoorji Pallonji, Bumi Armada build FPSO for ONGCReliance’s MJ gas condensate field to begin output this year

Next Story
Equipment

Handling concrete better

Efficiently handling the transportation and placement of concrete is essential to help maintain the quality of construction, meet project timelines by minimising downtimes, and reduce costs – by 5 to 15 per cent, according to Sandeep Jain, Director, Arkade Developers. CW explores what the efficient handling of concrete entails.Select wellFirst, a word on choosing the right equipment, such as a mixer with a capacity aligned to the volume required onsite, from Vaibhav Kulkarni, Concrete Expert. “An overly large mixer will increase the idle time (and cost), while one that ..

Next Story
Real Estate

Elevated floors!

Raised access flooring, also called false flooring, is a less common interiors feature than false ceilings, but it has as many uses – if not more.A raised floor is a modular panel installed above the structural floor. The space beneath the raised flooring is typically used to accommodate utilities such as electrical cables, plumbing and HVAC systems. And so, raised flooring is usually associated with buildings with heavy cabling and precise air distribution needs, such as data centres.That said, CW interacted with designers and architects and discovered that false flooring can come in handy ..

Next Story
Infrastructure Urban

The Variation Challenge

A variation or change in scope clause is defined in construction contracts to take care of situations arising from change in the defined scope of work. Such changes may arise due to factors such as additions or deletions in the scope of work, modifications in the type, grade or specifications of materials, alterations in specifications or drawings, and acts or omissions of other contractors. Further, ineffective planning, inadequate investigations or surveys and requests from the employer or those within the project’s area of influence can contribute to changes in the scope of work. Ext..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?