ONGC Q1 net down 26% at Rs 4,848cr

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ONGC Q1 net down 26% at Rs 4,848cr

This article was posted on Jul 23, 2009 and is filed under Stock News

MUMBAI: ONGC today reported a 26% decline in net profit at Rs 4,848 crore for the first quarter ended June 30, 2009 when compared with Rs 6,636 crore in Q1FY09.

Net sales also declined 26% to Rs 14,879 crore from 16,198 crore in Q1FY09.

UTVi had estimated the bottomline to drop 28% and sales to slip 19%…

Updated at 0900 hrs: ONGC is likely to report a 28% decline in net profit for the first quarter ended June 30, 2009, at Rs 4,761 crore from Rs 6,636 crore in the first quarter ended June 30, 2008, according to UTVi estimates.

Net sales for the first quarter ended June 30, 2009, are seen down 19% at Rs 16,198 crore from Rs 20,050 crore in the corresponding quarter of the previous year.

Factors at play

To report a decline in earnings for the second consecutive year in FY10
Gross realisation seen at $62/bbl v/s $126/bbl in Q1FY09
Subsidy of Rs1000 cr in Q1 FY10 v/s Rs 9800 cr in Q1FY09 and Rs 850 cr in Q4FY09
Net realisation is estimated at $57/bbl v/s $69/bbl in Q1FY09
Offering a discount of $6.6/bbl to the OMCs during Q1FY10
Earnings upside for ONGC is capped as higher subsidy burden offsets gains from higher crude oil prices

source: UTVI

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