ONGC: Public sector company Oil and Natural Gas Corporation (ONGC) has reported a record net profit of Rs 40,305 crore in the financial year 2021-22. Due to the rise in the price of crude oil, this jump has been seen in the profits of ONGC. At the same time, in the fourth quarter of the financial year 2021-22, the company’s net profit has increased by 31.5 percent. According to ONGC, its standalone net profit stood at Rs 8,859.54 crore in the fourth quarter as against Rs 6,733.97 crore in the year-ago period. With this, ONGC has now become the second most profitable company in the country after Reliance Industries.
Profits jump due to costlier crude oil
ONGC said in a statement that its net profit in the last financial year jumped 258 percent to Rs 40,305.74 crore. Due to this, the company had a profit of Rs 11,246.44 crore in the last financial year 2020-21. During the financial year, the company earned $ 76.62 on each barrel of crude oil production and sale. At the same time, in the last financial year, the company got $ 42.78 on each barrel of crude oil production. This is the highest price ONGC gets on crude oil production.
After Russia’s attack on Ukraine, in late 2021, there was a strong jump in crude oil prices in the international market and it reached a nearly 14-year high of $ 139 a barrel. Although crude oil prices had hit a record high of $147 per barrel in 2008, ONGC had to provide subsidies to companies retailing petroleum products, resulting in lower profits. Now ONGC is making profit according to the international prices as the public sector petroleum companies also fix the prices of petrol, diesel and other petroleum products according to the global rates.
ONGC got a price of $2.35 per unit (Million British Thermal Unit) for the gas in the last financial year. At the same time, in 2021-22, it got a price of $2.09 per unit for gas. In April this year, the price of gas has increased to $ 6.1 per unit. Its effect will be seen in the results of the first quarter of the current financial year of the company.
became the second most profitable company
The consolidated net profit of the company has increased to Rs 49,294.06 crore in the last financial year. It also includes profits of its subsidiary companies. In the previous financial year, ONGC’s consolidated net profit stood at Rs 21,360.25 crore. Both ONGC’s net and consolidated net profit are second in terms of profits of domestic companies. Earlier, Reliance Industries had earned a consolidated net profit of Rs 67,845 crore in the last financial year. During the financial year, the income of Reliance Industries was Rs 7,92,756 crore.
ONGC has left behind Tata Steel in terms of profits. Tata Steel’s standalone net profit for the last financial year stood at Rs 33,011.18 crore and consolidated net profit of Rs 41,749.32 crore. Tata Consultancy Services (TCS) is at the fourth position with a consolidated net profit of Rs 38,449 crore and State Bank of India is at the fifth position with a net profit of Rs 31,676 crore. (Input-PTI)