ONGC said in a statement here that the fall in profit comes despite the increase in gross revenue over the corresponding quarter in the previous fiscal and lower expenses during the quarter in consideration.
The company's gross revenue during the first quarter of the current fiscal of Rs 19,073 crore was a 7.2 per cent rise over the Rs 17,784 crore in the same period of fiscal 2016-2017.
ONGC's revenue from its offshore operations rose 4.2 per cent to Rs 13,068 crore during the quarter in question.
The net realisation per barrel of oil was also up by 18 per cent to $45.92 per barrel in the first quarter of this fiscal, from $38.90 per barrel in the same quarter of the last fiscal.
Total crude oil production during the first quarter increased 1.6 per cent to 6.444 million tonnes, as compared to the 6.345 million tonnes produced in the corresponding quarter of last year.
The company's gas output rose too by 9.8 per cent at 6.030 billion cubic metres (bcm), from 5.494 bcm during the first quarter of the previous fiscal.
Sequentially, ONGC's net profit dropped 10.5 per cent as compared to the previous quarter despite lesser expenses.
Expenses fell 32.4 percent largely on account of reduced statutory levies paid to the central and state governments. These levies fell 40 percent from the previous quarter to Rs 4,490 crore.
During the fourth quarter of the previous fiscal, ONGC had made royalty payments of Rs 2,444 crore to the governments of Assam and Gujarat. During the last fiscal, the Union government had settled the issue of the ONGC's royalty dues with the governments of Gujarat and Assam, on the basis of which the Supreme Court had disposed of the special leave petition in the matter.
ONGC also notified five new discoveries in the first quarter, with three new prospect discoveries and two new pool discoveries.
Earlier this month, the Union Cabinet on Wednesday gave its in-principle approval to the merger of oil marketer Hindustan Petroleum Corp Ltd (HPCL) with ONGC by approving the sale of the government's stake in HPCL to ONGC.
Under the arrangement, the exploration giant will not have to make an open offer after buying the 51.11 per cent government stake in HPCL.
With results being declared after market hours, the ONGC stock closed trade earlier on Thursday at Rs 163.45 a share, down 55 paise, or by 0.34 per cent, on its previous close on the BSE.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
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Doraiah Chowdary Vundavally is a Software engineer at VTech . He is the news editor of SocialNews.XYZ and Freelance writer-contributes Telugu and English Columns on Films, Politics, and Gossips. He is the primary contributor for South Cinema Section of SocialNews.XYZ. His mission is to help to develop SocialNews.XYZ into a News website that has no bias or judgement towards any.