Oil & Natural Gas Corp posted its third straight rise in quarterly profit on higher oil prices, and said the hike in state set natural gas prices would have a positive impact in the quarters ahead.Earlier this month, India more than doubled the prices of natural gas produced by state firms, bringing a windfall for Oil and Natural Gas Corp which will raise rates for the first time in five years.ONGC, which gets 13 percent of its revenues from natural gas, will see future upsides in its growth from the price hike, Chairman and Managing Director R. S Sharma said in a statement.Growth would also come from equity in subsidy sharing mechanism in crude oil sales and higher production of oil and gas, he added.The group is required to partially subsidise the sale of fuel to state retailers, which sell petrol and diesel at government-set prices below the market rate, affecting its earnings.State-run ONGC's subsidy payout jumped nearly five-fold to 49.99 billion rupees for the March quarter, compared to 8.52 billion a year ago.But Sharma said higher oil prices resulted in higher net realisations despite the increase in subsidy. Net proceeds after subsidy payouts rose to $51.42 a barrel in its fiscal fourth quarter ended March from $43.40 a year earlier.On Friday, crude oil was hovering around $75 a barrel.ONGC reported a net profit of 37.76 billion rupees for January-March, up from 22.07 billion a year earlier. Net sales rose to 147.13 billion rupees from 137.04 a year ago.Ahead of the results, shares in ONGC, India's second-most valuable company with a market worth of $51 billion, rose 0.5 percent to 1,130.95 rupees in a Mumbai market that rose 1.2 percent.The shares have declined 4 percent so far in 2010, matching a 3.5 percent fall in the main index.(Writing by Prashant Mehra; editing by Surojit Gupta)News posted by www.newsinfoline.com
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