The company reported a pre-tax loss of Rs 979.17 crore in Q4 FY23 as compared with profit before tax of Rs 11,714.30 crore in Q4 FY22.
The company said that it has reviewed the entire issue of disputed Service tax and GST on royalty and decided to make a provision towards these disputed taxes as a prudent and conservative practice. Accordingly, during the quarter and year ended 31 March 2023, the company provided Rs 12,107 crore towards disputed taxes of ST/GST on Royalty for the period from 1 April 2016 to 31 March 2023 together with interest thereon.
The above adjustments adversely impacted the profitability for Q4 and FY23. However, the company said it shall continue to contest such disputed matters before various forums based on the legal opinion.
The company's net crude oil price realization was $77.12 per barrel (up 18.8% YoY) and gas price realization was $8.57 per mmbtu (up 195.5% YoY) during the period under review.
ONGC's crude oil production declined 2.9% year on year to 5.235 metric million tonnes (MMT) in Q3 FY23. Gas production during the quarter was 5.261 billion cubic meters (BCM), up by 1.5% on YoY basis.
On consolidated basis, the firm's net profit tumbled 52.73% to Rs 5,701.46 crore despite of 5.21% rise in revenue to Rs 164,066.72 crore in Q4 FY23 over Q4 FY22.
On full year basis, the company's net profit fell 3.66% to Rs 38,828.87 crore on 40.94% jump in total income to Rs 1,55,517.32 crore in FY23 over FY22.
The company said that the decrease in oil/gas production was mainly due to delay in implementation of KG-98/2, cluster-II project and less than envisaged production from WO-16 and Cluster-7 and reservoir issues in S1-VA fields.
Meanwhile, the company's board recommended final dividend of Re 0.50 per equity share for the financial year 2022-23, subject to approval by the members.
Maharatna Oil and Natural Gas Corporation (ONGC) is the largest crude oil and natural gas company in India, contributing around 71% to Indian domestic production. It has in-house service capabilities in all areas of exploration and production of oil & gas and related oil-field services. The Government of India held 58.89% stake in ONGC as of March 2023.
Shares of ONGC declined 1.62% to end at Rs 163.60 on Friday, 26 May 2023.