MUMBAI (Reuters) - State-run explorer Oil & Natural Gas Corp reported a 24.5 percent fall in first-quarter net profit, lagging estimates, as a rise in crude oil prices meant it had to make higher subsidy payouts.
ONGC (ONGC.NS : 1246.55 -13), which is looking to buy BP's assets in Vietnam, posted April-June net profit of 36.61 billion rupees ($785.6 million), down from 48.48 billion rupees a year earlier.
A Reuters poll had forecast net profit of 42.6 billion rupees.
ONGC is required to partially subsidise the sale of fuel to state-run retailers, who sell fuel at government-set, below-market prices, which affects its profit.
The government recently deregulated gasoline prices and has said it would free diesel prices as well, but clarity on the subsidy-sharing mechanism for other fuels has still not emerged.
ONGC and state-backed PetroVietnam are expected to submit a joint formal offer within weeks to buy BP's stake in the Nam Con Son gas project, Oil Secretary S. Sundareshan said on Tuesday.
ONGC shares fell 1.1 percent to 1,242.50 rupees ahead of the results, while the broader Mumbai market gained 0.2 percent
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