Higher depreciation hits ONGC - Livemint

Oil and Natural Gas Corp. Ltd (ONGC) posted a 6% increase in profit for the quarter ended September, dragged down by a sharp 87% year-on-year surge in depreciation, owing to write-offs of dry wells.

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Net profit rose to around Rs 5,390 crore compared with a 20% increase in total operating income to Rs 18,430 crore. Analysts attributed this growth to the full impact of the deregulation of petrol prices and the increase in APM (administered price mechanism) gas prices (for the fuel produced from government-nominated blocks). In June, APM gas prices were brought on a par with that from the D6 block of the Krishna-Godavari basin. ONGC said it benefited from this to the tune of Rs 1,760 crore in revenue. Net realizations for the quarter stood at $62.75 (Rs 2,792 today) per barrel compared with $56.42 per barrel last year. Net realizations have improved compared with the June quarter as well. The company incurred a subsidy burden of Rs 3,020 crore against Rs 2,630 crore last year.

Higher depreciation hits ONGC - Livemint