{"id":11530,"date":"2024-08-06T11:03:53","date_gmt":"2024-08-06T11:03:53","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=11530"},"modified":"2024-08-06T11:03:53","modified_gmt":"2024-08-06T11:03:53","slug":"top-indian-oil-producers-profit-falls-on-lower-output-taxes","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/11530\/","title":{"rendered":"Top Indian Oil Producer\u2019s Profit Falls on Lower Output, Taxes"},"content":{"rendered":"

RoydadNaft – <\/a><\/span>\u00a0India’s Oil and Natural Gas Corp (ONGC) beat first-quarter profit estimates on Monday, bolstered by strong domestic fuel demand and higher price realisation.<\/p>\n

India’s fuel consumption largely rose from year-ago periods in the quarter, data from the oil ministry showed, helped by strong industrial activity. The country is the world’s third-biggest oil importer and consumer.<\/div>\n
Strength in the power sector, solid economic growth and higher jet fuel consumption helped demand, Prashant Vasisht, vice president and co-head, corporate ratings at ICRA, said earlier this year.<\/div>\n

ONGC reported a standalone profit of 89.38 billion rupees ($1.06 billion) for the three months to June 30, beating analysts’ average estimate of 85.85 billion rupees, per LSEG data.<\/p>\n

The company’s standalone earnings exclude profit from joint ventures, refining and marketing and profit from outside India operations.<\/p>\n

ONGC’s crude oil price realisation, or the price at which it sells the product, grew 8.8% to $83.05 per barrel, compared with $76.36 per barrel a year ago.<\/p>\n

Its revenue from operations rose 4% to 352.66 billion rupees.<\/p>\n

However, the company’s profit still fell 15%, which analysts attributed to the government’s windfall tax on petroleum crude – a tax levied on specific industries when they gain a sudden boost in their profits.<\/p>\n

ONGC’s expenses swelled 19% to 253.71 billion rupees, led by an 18% rise in depreciation, depletion, amortisation and impairment costs.<\/p>\n

Shares of ONGC closed 6% lower on Monday amid a broader market sell-off.<\/p>\n

Peer Oil India is expected to report quarterly results later this week.<\/div>\n

($1 = 84.0296 Indian rupees)<\/p>\n

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