ONGC Misses Estimates On Higher Employee Costs
Employee benefit expenses increased over 54 percent during the quarter.
Weak Q4
- Profit declines marginally due to higher employee costs.
- Employee costs increase more than 54% due to pay revision of officers and union workers from January 1.
- Revenue rises nearly 9 percent sequentially but missed analyst estimates.
- Realises $54.9 per barrel of crude oil, 57% higher on year-on-year basis.
- Board recommends final dividend of Rs 0.8 per share taking the payout to Rs 1,027 crore.
State-owned Oil and Natural Gas Corporation Ltd. reported marginally lower profit as the oil explorer spent more on employee benefits in the fourth quarter.
Net profit fell 0.27 percent to Rs 4,340.2 crore compared to the previous quarter, according to its stock exchange filing. The bottomline was also hit by lower crude oil prices which outweighed gains from lower gas prices and a stronger rupee. Revenue rose 8.5 percent sequentially to Rs 21,714 crore. Analysts tracked by Bloomberg had expected a profit of Rs 5,074 crore and a revenue of Rs 22,827 crore.
Employee costs increased more than 54 percent during the quarter to Rs 7,492 crore. This was on account of pay revision of officers and union workers that came in effect on January 1. The company has provided Rs 1,944 crore as estimated long-term benefit obligations such as gratuity.
Total expenses including depreciation and finance costs went up 41 percent during the quarter.
ONGC realised $54.9 per barrel of crude oil, which was 57 percent higher than what they had realised in the same quarter last year, according to a media statement.
The board has recommended a final dividend of Rs 0.8 per share taking the payout to Rs 1,027 crore. Shares of ONGC Ltd. had gained 0.9 percent during the day’s trade, tracking the country’s benchmark BSE Sensex which closed 0.9 percent up at a record high.
