ONGC posts 16% dip in Q4 net profit - Business Standard

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The biggest government-owned company, Oil and Natural Gas Corporation, posted a 16 per cent decline in net profit at Rs 2,627 crore in the fourth quarter of 2008-09, on the back of lower crude oil production during the period. For the year, the company’s net profit declined 3 per cent to Rs 16,126 crore from Rs 16,702 in the previous year.

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A further drop in net profit was prevented due to a smaller subsidy payout of Rs 852 crore during the January-April quarter, though the oil and gas producer shelled out Rs 28,225 crore as subsidy-sharing, higher than the Rs 22,001 crore in 2007-08, with oil marketing companies Indian Oil Corporation, Hindustan Petroleum and Bharat Petroleum. The decline in profit was despite the highest ever sales income of Rs 63,949 crore, which was up 6 per cent from Rs 60,137 crore in 2007-08. In the fourth quarter ending March 31, the fall in international crude oil prices saw the company’s gross realisation fall half to $47.85 from $100.37 in January-April 2009. But, the net realisation after a low subsidy sharing, was only little less at $43.4 a barrel, compared to $49.66 last year in the same quarter.

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