ONGC shares jump over 2% after Q2 PAT surges 17% YoY to Rs 11,984 crore

Shares of the state-owned company Oil & Natural Gas Corporation (ONGC) surged 2.3% to its intraday high of Rs 262.80 on the BSE after the company reported a 17% year-on-year rise in profit to Rs 11,984 crore in the second quarter, aided by lower levies.

Revenue for the July-September quarter fell 3.6% to Rs 33,881 crore on lower oil prices.

The company realised an average oil price of $78.33 per barrel from nominated fields during the second quarter, 7.7% lower than $84.84 during the year-ago period.

The average realisation from the joint venture fields was $77.91, down 1.9% from a year earlier. Natural gas price remained unchanged at $6.5 per mmBtu.

The company has declared a dividend of Rs 6 per share and fixed November 20 as the record date for its distribution.

The levies on its output fell 27% to Rs 7,829 crore in the second quarter from Rs 10,791 crore in the year-earlier period as the fall in crude oil price reduced the windfall tax burden.ONGC’s crude oil production clocked a 0.7% year-on-year rise in the second quarter. The gas production, however, declined 2.1%.ONGC has made a discovery in the ultra-deepwater area of Cauvery offshore, the company said in a statement.
Ahead of the earnings announcement, shares in ONGC closed 2% lower on BSE at Rs 256.90 apiece on Monday when the benchmark Sensex ended nearly unchanged. ONGC shares have lost a quarter in three months as rising global supply cloud glut prospects for oil producers.

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