New Delhi, July 28: State-run explorer Oil & Natural Gas Corp reported a 12 percent rise in quarterly profit, missing street estimates as higher subsidy payments offset gains from a rise in crude oil and gas prices.
ONGC said net profit for its fiscal first quarter rose to Rs 4,095 crore (USD 929 million), compared with Rs 3,661 crore a year earlier.
A Reuters’ poll of ten brokerages had on average expected net profit of Rs 4,260 crore for the quarter.
Net sales rose to Rs 16,268 crore from Rs 13,710 crore a year ago.
ONGC is required to partially subsidise fuel sales to state-run retailers, which in turn sell fuel at state-set, below-market prices.
Shares in the company, valued at USD 53.5 billion, closed 0.3 percent higher at Rs 277.20 ahead of the announcement. The stock has declined nearly 14 percent so far in 2011, compared with an 11.2 percent fall in the main stock index.
—Bureau Report