Oil Prices Mask ONGC Difficulties

June 2006 | Company Finance Alert

India's national oil firm Oil and Natural Gas (ONGC) has reported record-breaking earnings for the fiscal year 2005-6 despite operational and financial difficulties. Net profit was up 11% year-on-year to reach INR144.31bn (US$3.1bn), while revenues reached INR505.6bn (US$10.9), 4% higher than the previous year. However, these record-breaking results owe more to the favourable price environment rather than any significant operational improvements. In fact, the firm saw oil and gas output fall compared to the previous year, mainly due to the loss of output resulting from the Mumbai High fire in 2005. The firm's exploration and production arm reported similarly unspectacular

If you would like to subscribe to Asia Pacific Oil and Gas Insight and gain instant access to this article, please click here to subscribe.

If you would like to take a trial to Asia Pacific Oil and Gas Insight please click on the trial link below.