Oil and Natural Gas Corporation Ltd.'s profit missed analyst estimates in the quarter ended March as oil and gas production fell and expenses rose.
Net profit of the country's largest oil explorer rose 17.94 percent to Rs 5,915 crore on a sequential basis, it said in a stock exchange filing today. That's below the Rs 6,543 crore estimated by analysts tracked by Bloomberg. Revenue increased 4.23 percent to Rs 2,3970 crore as compared to the same quarter last year.
The bottom line was hit by as crude production fell more than 2 percent to 6.2 million metric tonnes quarter-on-quarter while production of gas declined 3.2 percent. Higher exploration costs and other expenses also weighed on fourth quarter profit. This was partially offset by higher other income due to dividend from Industan Petroleum Corporation Ltd. and Indian Oil Corporation Ltd. and lower tax expenses.
Other Highlights
- Earnings before interest, tax, depreciation and amortisation fell 23 percent quarter-on-quarter to Rs 8,345 crore
- Operating margin narrowed to 34.8 percent from 47.3 percent in the same period.
- Other income rose more than threefold to Rs 3,734 crore.
- Net realisation at $66.71 per barrel versus $60.58 per barrel.
- Exploration cost jumped 89 percent to Rs 3,036 crore
- Other expenses rose 34 percent to Rs 5,671 crore
Ahead of the earnings announcement, shares of ONGC fell as much as 0.72 percent to Rs 187.3 apiece. The stock rose 14.2 percent in the January-March quarter.
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