The net profit of state-run Oil & Natural Gas Corp (ONGC) fell 17.5 percent during Oct-Dec 2012 to Rs 5,563 crore from Rs 6,741 crore in the same period previous year.
The company attributed the contraction in the bottomline to a higher tax on crude oil and fall in its oil and gas output. The cess on crude oil was raised 80 percent to Rs 4,500 per tonne from Rs 2,500 earlier.
It may also be noted that the fall in the net profit of the firm comes on the back of high base. During Oct-Dec 2011, the firm had an exceptional gain of Rs 3,142 crore, which was a one time royalty settlement for Rajasthan crude oil by Cairn, ONGC Chairman and Managing Director Sudhir Vasudeva said.
ONGC is 30 percent partner of Cairn India in the Rajasthan oil block, where had made excess payment of royalty pending a dispute.
During the above quarter, the company also witnessed decline in its oil and gas output compared to the previous quarter because of restricted crude oil production from the eastern offshore assets and drop in gas output from the Mumbai High and Cauvery fields.
Gas output is low because there was low off take as several consumers cut demand because of the monsoon and plant shutdown. It has, however, no impact on sales, Vasudeva added.
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