<p>Net profit in January-March dropped 26 per cent to Rs 2,791 crore, from Rs 3,776 crore in the same period a year ago, ONGC Chairman and Managing Director A K Hazarika told reporters here.<br /><br />ONGC had to pay the highest ever Rs 24,892 crore, half of it in Q4, in fuel subsidy by way of discounts on crude oil it sells to state-owned refiners.<br /><br />Till last year, ONGC and other upstream firms Oil India and GAIL met one-third of the loss retailers incurred on selling diesel, domestic LPG and kerosene at government controlled rates but in 2010-11 fiscal the sharing has gone up to 38.8 per cent.<br /><br />“We paid Rs 12,136 crore in fuel subsidy compensation in Q4 compared to Rs 4,999 crore in the same period the previous fiscal,” he said.</p>.<p>Had the fuel subsidy not increased, net profit would have been higher by Rs 2,074 crore.<br /><br />Hazarika said ONGC got USD 108.9 on sale of every barrel of crude oil in January-March quarter but it had to give a discount of $70.15 per barrel, taking the net realisation to USD 38.75 per barrel.</p>.<p>For the 2010, net profit was up 13 per cent to Rs 18,924 crore from Rs 16,768 crore in 2009-10.<br /><br />But for the subsidies, ONGC’s net profit should have been higher by Rs 14,247 crore in the full fiscal.<br /><br />In the full fiscal, ONGC’s net realisation was $53.77 per barrel after giving a discount of $35.64 per barrel.<br /><br />Hazarika said the company’s crude oil production was marginally down at 24.42 million tons in 2010-11 from 24.67 million tons in the previous year. Gas output was almost flat at 23.09 billion cubic meters.<br /><br />Sales were up 5 per cent in Q4 to Rs 15,554 crore and by 10 per cent in full fiscal 2010-11 to Rs 66,152 crore. <br /></p>
<p>Net profit in January-March dropped 26 per cent to Rs 2,791 crore, from Rs 3,776 crore in the same period a year ago, ONGC Chairman and Managing Director A K Hazarika told reporters here.<br /><br />ONGC had to pay the highest ever Rs 24,892 crore, half of it in Q4, in fuel subsidy by way of discounts on crude oil it sells to state-owned refiners.<br /><br />Till last year, ONGC and other upstream firms Oil India and GAIL met one-third of the loss retailers incurred on selling diesel, domestic LPG and kerosene at government controlled rates but in 2010-11 fiscal the sharing has gone up to 38.8 per cent.<br /><br />“We paid Rs 12,136 crore in fuel subsidy compensation in Q4 compared to Rs 4,999 crore in the same period the previous fiscal,” he said.</p>.<p>Had the fuel subsidy not increased, net profit would have been higher by Rs 2,074 crore.<br /><br />Hazarika said ONGC got USD 108.9 on sale of every barrel of crude oil in January-March quarter but it had to give a discount of $70.15 per barrel, taking the net realisation to USD 38.75 per barrel.</p>.<p>For the 2010, net profit was up 13 per cent to Rs 18,924 crore from Rs 16,768 crore in 2009-10.<br /><br />But for the subsidies, ONGC’s net profit should have been higher by Rs 14,247 crore in the full fiscal.<br /><br />In the full fiscal, ONGC’s net realisation was $53.77 per barrel after giving a discount of $35.64 per barrel.<br /><br />Hazarika said the company’s crude oil production was marginally down at 24.42 million tons in 2010-11 from 24.67 million tons in the previous year. Gas output was almost flat at 23.09 billion cubic meters.<br /><br />Sales were up 5 per cent in Q4 to Rs 15,554 crore and by 10 per cent in full fiscal 2010-11 to Rs 66,152 crore. <br /></p>