ONGC Q4 Net dips 6.2% at Rs 4340 cr on royalty payments
- Author: Rita Burton May 27, 2017,
May 27, 2017, 4:42
Net profit rose to Rs 1,819 crore in the quarter ended March 31, from Rs 1,388 crore during year-earlier quarter on strong growth in revenue, the oil marketing company said in a press statement.
HPCL shares surged 10 percent after the results.
"But for the royalty payments, our net profit would have been higher by Rs 1,600 crore", he said. The company has earmarked ₹1,944 crore for pay revision of officers and unionized category that is due from January 1 this year.
Total income of ONGC jumped 29.24 per cent on a year-on-year basis to Rs 26,233.56 crore in Q4FY17 over Rs 20,297.83 crore in Q4FY16.More news: Heavy snow fell in Colorado this week
The company made an inventory gain of Rs 743 crore in the fourth quarter of 2016-17 compared with Rs 37 crore gain made in the same period of the previous financial year.
The company earned $7.99 on turning every barrel of crude oil into fuel in the quarter compared with a gross refining margin (GRM) of $7.51 per barrel, he said. HPCL's Mumbai and Visakh refineries processed the highest ever crude oil of 17.81 mt with a capacity utilisation of 113 per cent in 2016-17 as opposed to a throughput of 17.23 mt in the previous fiscal.
ONGC has also approved the acquisition of entire 80 per cent stake participating interest of Gujarat State Petroleum Corp (GSPC) along with operatorship in the Deen Dayal West field, where geological challenges have delayed commercial production for many years, for a consideration of Rs 6,454 crore, the company said.