ONGC Q2 profit tumbles 30% to ₹12,826 cr. on windfall tax woes

New Delhi

India’s top oil and gas producer ONGC reported a 30% fall in September quarter net profit after the government brought a new tax on windfall profits arising from a spurt in international energy prices.

Net profit of ₹12,825.99 crore, or ₹10.20 a share, in July-September 2022-23 is compared with ₹18,347.73 crore, or ₹14.58 per share net profit in the same period a year earlier, Oil and Natural Gas Corporation (ONGC) said in a statement.

Profit fell 15.6% over the preceding June quarter when it had reported ₹15,205.85 crore net profit.

Net profit fell despite the company’s gross billing for crude oil it produced soaring 37.7% to $95.49 per barrel in July-September from $69.36 a barrel a year back.

State-owned ONGC sells crude oil, which is refined at refineries to produce petrol, diesel and other petroleum products, at international benchmark rates which soared following the Russian invasion of Ukraine.

However, the government beginning July 1 brought a new tax to take away gains accruing from the global energy price surge.

The tax, which is adjusted every 15 days in step with changes in global oil prices, was as high as $40 per barrel when the tax was introduced.