ONGC's December quarter net triples to Rs 4,352 crore

State run Oil and Natural Gas Corporation Ltd (ONGC)'s standalone net profit rose almost three-fold in the December 2016 ended quarter, but missed street estimates. The year-on-year jump in profit came against a high exceptional cost item reported in the comparative quarter of the last financial year.

The Company has posted a net profit of Rs 4,352.33 crore against Rs 1,465.88 crore in the same period a year ago. In the October-December 2015 quarter, the company had a reported an exceptional cost item of Rs 3,616.41 crore against no exceptional cost reported in the same quarter in 2016. The exceptional cost reported in the 2015 quarter was on account of impairment taken on its cash generating units owing to fall in global oil prices.

The company's total revenue increased 9 per cent to Rs 20,906.46 crore from Rs 19,263.64 crore reported in the same period a year ago. In a Bloomberg poll, 20 analysts had estimated revenue at Rs 19,394.2 crore and 21 analysts estimated net profit at Rs 4,835.70 crore. While, the company's revenue was tad higher than the street estimates, it missed expectations on its net profit performance.

ONGC reported total expenses of Rs 14,374.84 crore in the December 2016 quarter against Rs 13,405.09 crore a year back.

At its board meeting on Tuesday, the company's board of directors also approved a second interim dividend of Rs 2.25 per equity share for the financial year 2016-17. The payment of this second interim dividend will start on February 9, the company said in its statement to BSE.

During the quarter under review, the company also approved the acquisition of the entire 80 per cent participating interest of Gujarat State Petroleum Corporation Ltd. (GSPC) along with operatorship rights, for a purchase consideration of $995.26 million for Deen Dayal West Field in the Block. In addition to details on the GSPC deal, analysts in a call later with the management will look for guidance on future capital expenditure, outlook on ONGC Videsh Ltd's performance and comments on volume ramp up.

Oil and Natural Gas Corporation Limited (ONGC)