India`s leading oil and gas exploration and production company, *Oil & Natural Gas Corporation (ONGC)* reported a steep drop in standalone net profit for the quarter ended December 2008.
Lower price realization due to falling oil prices and subsidy burden coupled with fall in sales volume pushed the profit of the company lower during the quarter. It also failed to meet analysts` expectation. During the quarter, the profit of the company declined 43.32% to Rs 24,748.10 million from Rs 43,665.40 million in the same quarter last year. The analysts polled by Bloomberg had estimated earnings of Rs 42,789.67 million for the quarter ended December 2008. Net sales declined 17.08% to Rs 125,387 million, below analysts` expectation of Rs 149,740 million, while total income for the quarter fell 14.56% to Rs 136,573.10 million, when compared with the prior year period. The company posted earnings of Rs 11.57 a share during the quarter, registering 43.34% decline over previous year period. *Quarterly Results - Standalone (Rs in mn)* *As at* *Dec - 08* *Dec - 07* *%Change* *Net Sales* 125,386.50 151,208.30 (17.08) *Net Profit* 24,748.10 43,665.40 (43.32) *Basic EPS* 11.57 20.42 (43.34) During the quarter, the operating margin of the company dropped to 40.70% compared with 53.12% in the previous year period. Interest cost decreased 63.95% to Rs 41.10 million, while depreciation cost rose 29.32% to Rs 28,602.60 million over previous year period. *Major highlights of the quarter:* The company also announced it`s 20 new discoveries in areas under operative control. The oil gaint also announced it`s foray into the Caspian sea with ONGC Mittal Energy and Kaz Muani Gas signing an HOA on Jan. 24, 2009 for Oil and Gas in Satpayev Block in Caspian Sea, Kazakhstan. The company was also accorded the ONGC premier trading house status by Ministry of Commerce and Industries for achieving the target of Rs 100 billion in exports for this year apart from previous three year period. The company had also signed a Memorandum of Understanding (MoU) with Arrow Energy for co-operation in Coal bed Methane Sector. The MOU has been signed with the objective of joint participation in blocks in India and abroad for exploration, field development and production. --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Kences1" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/kences1?hl=en -~----------~----~----~----~------~----~------~--~---
