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 ONGCReliance’s MJ gas condensate field to begin output this year