State-owned Oil and Natural Gas Corporation (ONGC) reported a 92% drop in net revenue in its June quarter. The report comes on Tuesday after oil prices halved and also the gas charges dropped to a decade low price.
ONGC has revealed a combined net profit of ₹1,090.03 crore for the initial quarter of fiscal year 2020-21. However, this is rather lower than the ₹7,120.08 crore combined revenue reported by the firm in the same quarter of the earlier monetary year. The firm claiming this slump because of the Covid-19 pandemic.
ONGC stated its income and net revenue has affected by lower crude price fulfillment within the wake of Covid-19 fall out. The firm also gets affected by international oil and gas trade as a direct fallout of hostile price actions in global crude prices. In fact, lower gas costs also led to lower topline and bottom line.
It pointed that oil, gas and petroleum has declared products as essential services by the government during the lockdown. Also, the firm continued producing, supplying crude oil and natural gas to its clients during the lockdown interval.
ONGC’s Oil and Gas Inventory
The fall in revenue and income concurs with a fall in average net realisation for crude oil produced from most of ONGC’s fields. The net realisation from ONGC’s fields fell to $28.72 per barrel. In fact, it far too down from $66.32 per barrel in the comparable quarter of the last fiscal.
Total crude oil manufacturing throughout the interval under evaluation stood at 5.665 million tonne. It comes down from 5.869 million tonne in the related quarter. Also, Total natural gas production was at 5.544 billion cubic metres (BCM); comes down from 6.420 BCM in the same quarter of the past fiscal.
ONGC stated its authority has assessed the likely effects of Covid-19 on their trade. The authority has done a judgment on the premise of inner and exterior sources of data. It also expects no vital impact on the continuity of services. The expert also stated, it won’t harm the useful life of property plant and tools, recoverability of assets, trade receivables, etc. It also checks out the fiscal position of the firm on a long-run basis.
Overall total gains for the period under assessment also accounted for a decline to ₹63,575 crore. In fact, it’s far too down against the ₹1,11,088 crore in the equal quarter of fiscal 2019-20.
The earnings of ONGC also account for the trade of downstream subsidiaries, HPCL and Mangalore Refinery and Petrochemicals Ltd.
ONGC stated in an announcement that, the fiscal results for the quarter has affected by very low realised crude oil. It also affected because of the Covid-19 pandemic. However, the firm claimed the unstable global crude oil markets resulted into the fiscal losses in the 1st quarter of 2020-21.
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