Top India oil producer’s profit soars as energy prices rise

(Bloomberg) — Oil & Natural Gas Corp.’s profit beat estimates to rise more than three times after oil prices surged in the wake of Russia’s invasion of Ukraine and an increase in local gas prices.

The top firm’s net income soared to 152.1 billion rupees ($1.9 billion) in the quarter ended June from 43.35 billion rupees in the same period a year ago, according to an exchange filing on Friday. That’s higher than the average 148.4 billion rupees estimated by a Bloomberg survey of analysts. Revenue rose 84% to 423.2 billion rupees.

Russia’s invasion of Ukraine threw worldwide commodity markets into disarray, leading to sky-high prices amid supply disruptions and rising demand. Energy producers from Saudi Aramco to Exxon Mobil Corp. reported record profits, reaping the rewards from surging oil and gas prices.

That prompted India to impose a $40-a-barrel tax on domestic production of oil from July 1 to take away windfall gains being reaped by producers, which was later reduced after prices softened.

The state-owned explorer earned an average $108.5 a barrel in the quarter as against $65.6 a year ago, according to a statement. It sold gas at $6.1.

Total oil output rose 1.9% to 5.5 million tons during the quarter, while gas production increased 1.4% to 5.4 billion cubic meters.