New Delhi: Oil and Natural Gas Corporation Ltd (ONGC), said on Wednesday its quarterly net profit rose 24 per cent, beating expectations, on high crude oil prices, sending its shares up 4 per cent.
"Looking at the trend the outlook is positive," Chairman RS Sharma told reporters.
ONGC, India's most valuable company worth more than $32 billion, is expected to gain from rising output in the months ahead, compared with a year ago when crude oil output fell after a fire destroyed a large processing platform in Mumbai High, India's largest oilfield.
ONGC, which accounts for 80 percent of India's crude output, said April-June net profit was Rs 4119 crore ($880 million), compared with Rs 3318 crore reported a year ago. Sales rose to Rs 14677 crore from Rs 10954 crore.
"The rise in net profit is due to high crude oil prices and better realisation from gas sales," Sharma said.
A Reuters poll of 10 analysts had estimated net profit would rise 14 percent to Rs 3766 crore.
Shares in ONGC, which is about the same size as Norway's Norsk Hydro ASA and Europe's Repsol, rose more than 4 per cent to Rs 1,137.50 in a firm Mumbai market.
The company's board recommended a bonus issue of one share for every two held. ONGC does not get the full benefit of high crude prices as it is forced to offer discounts to state-run Indian Oil Corporation Ltd, Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd.
Sharma said ONGC had sold crude to state firms at $45 a barrel in April-June, after a discount of $26.39.
The government directs ONGC to sell its crude at a discount to partly compensate state refiners, which have been allowed only a moderate increase in fuel prices despite soaring crude oil costs.
Full-year net profit is forecast to jump 29 per cent to Rs 18594 crore, according to Reuters Estimates.
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