State-owned Oil and Natural Gas Corporation (ONGC) on Saturday reported nearly seven-fold jump in third quarter net profit after higher oil and gas prices offset a drop in production. Net profit of Rs 8,764 crore in October-December 2021 rose 596.7 per cent over Rs 1,258 crore net profit in the same period a year back, the company said in a statement.

The nation’s top oil and gas producer got USD 75.73 for every barrel of crude oil it produced and sold in the third quarter of the current fiscal year as compared to USD 43.20 a barrel realisation in the same period of 2020-21. Gas price rose to USD 2.90 per million British thermal unit in October-December 2021 as against USD 1.79 a year back. This spurt in prices more than made up for the fall in production. Oil production fell 3.2 per cent to 5.45 million tonne while gas output was 4.2 per cent lower at 5.5 billion cubic meters.

“The production of crude oil and gas has declined during current year mainly due to restrictive conditions created by cyclone Tauktae and Covid, delay in mobilization of mobile production unit Sagar Samrat to WO-16 Cluster project (in western offshore), modification work at Hazira and reservoir issues in S1 Vashistha fields in eastern offshore,” the statement said. Revenue in the quarter under review was up 67.3 per cent to Rs 28,474 crore.

During the first nine months of the current fiscal year, net profit rose to Rs 31,446 crore as compared to Rs 4,512 crore in April-December 2020. Revenue was up 61.5 per cent to Rs 75,849 crore. “During the nine months ended December 31, 2021, the company had decided to opt for a lower tax regime u/s 115BAA of the Income Tax Act, 1961, with effect from FY 2020-21.

“Accordingly, the company has recognized provision for tax expenses and re-measured its net deferred tax liabilities. The net impact due to availing the option has resulted in decrease in deferred tax by Rs 8,689 crore and decrease in current tax by Rs 2,107 crore,” the statement said.

The board of the firm approved a second interim dividend of 35 per cent (Rs 1.75 per share). “The total payout on this account will be Rs 2,201.55 crore.”

This dividend is in addition to the first interim dividend of Rs 5.50 per share (110 per cent) declared earlier in November 2021. During the current fiscal year, ONGC made three oil and gas discoveries – an oil and gas find in Ratna & R-Series field in the Mumbai offshore basins and two gas discoveries in KG onland block.

“Out of three hydrocarbon discoveries notified till date during FY 2021-22, two onland discoveries — South Velpuru-2 and Gopavaram Deep-1 (in KG onland block) have already been monetized by ONGC,” the statement added.