ONGC Q4 net profit 6% down at Rs 4,340 crore
ONGC says income from operations grew 34% to Rs 21,714 crore, but cost of materials and employee benefits increased total expenditure, resulting in the decline in net profit
State-owned explorer Oil and Natural Gas Corp. (ONGC) on Friday said its net profit declined 6% to Rs4,340 crore in the January-March quarter from a year ago.
Income from operations grew 34% to Rs21,714 crore, but cost of materials used and employee benefits increased total expenditure, resulting in the decline in net profit, the company said in a filing to stock exchanges.
The board of directors of the company recommended a final dividend of 80 paise per share of Rs5 each in addition to the interim dividend of Rs6.75 a share.
ONGC had reported a net profit of Rs4,624 crore in the fourth quarter of 2015-16. For the full year 2016-17, net profit jumped 11% to Rs17,900 crore, while income from operations inched up marginally by 0.2% to 17,900 crore.
ONGC is in the process of making huge investments into exploration as well as in monetising hydrocarbon discoveries already made as the government has set a target of reducing import dependence of fossil fuels by 10 percentage point by 2022 to 67% from 2015 levels.
In the fourth quarter of 2016-17, ONGC made a net realization of $ 54.91 a barrel of crude oil from nominated fields compared to $34.88 it realized in the same period a year ago. The company made 23 discoveries in 2016-17 against 17 discoveries it made a year ago. Of the 23 discoveries, 13 are on land while 10 are offshore