AFP
India's ONGC profit rises 6%

Thu Oct 29, 9:06 AM ET

MUMBAI (AFP) - India's biggest oil producer ONGC reported Thursday a six percent increase in quarterly profit as its subsidy burden fell sharply thanks to a fall in global energy prices.

State-run Oil and Natural Gas Corp (ONGC) said net profit for the July-to-September quarter rose to 50.89 billion rupees (1.07 billion dollars) from 48.08 billion rupees in the same period a year earlier.

The second-quarter figures were in line with market expectations.

The company, which produces nearly 80 percent of the nation's oil and gas, is obliged to sell fuel at high discounts to state-run refineries. The refineries then sell diesel and petrol at cheaper rates to the public.

The company said its fuel subsidy burden slid to 26.3 billion rupees from 126.6 billion rupees in the second quarter a year earlier as a result of the decrease in international energy prices.

Sales fell 13 percent to 151.91 billion rupees.

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