The Oil and Natural Gas Corporation (ONGC) has reported a 20 per cent drop in the September quarter net profit on a decline in oil prices and lower output.

The company reported a net profit of Rs 10,216 crore in July-September quarter compared with Rs 12,826 crore in the same period last year.

This is the second consecutive quarter of decline in net profit for ONGC, India’s top crude oil and natural gas producer.

The company had reported a 34 per cent drop in its April-June quarter profit.

ONGC earned $84.84 for every barrel of crude oil it produced and sold from nomination fields against a gross realisation of $95.50 per barrel last year and $76.49 earning in the preceding quarter.

Oil prices globally had risen sharply in April-June 2022 after Russia’s invasion of Ukraine led to uncertainties over supply and demand. Rates have cooled this year. They were in the $80-90 range in the second quarter.

ONGC director (finance) Pomila Jaspal said the main reason for the decline in net profit is lower oil prices. Oil and gas production was slightly lower than last year. This will, however, reverse in the current quarter (October-December) as the company brings to production a prolific oilfield in the KG basin.

“We will be starting production from KG-DWN-98/2 this month and this will help raise the output and thereby earnings,” she said.

Last year, the company had a Rs 1,900 crore reversal of impairment which had boosted earnings. This year there is no such exceptional income.

Gross revenue fell 8.2 per cent to Rs 35,163 crore mainly because it realised lower oil prices. ONGC said crude oil production was 1.9 per cent lower at 4.54 million tonnes, while gas output fell 3 per cent to 5.01 billion cubic meters.