Profit rose to Rs 5,915 crore in the three months to March. Revenue from operations grew 10% to Rs 23,969 crore.
International oil prices are up about 60% in a year, boosting revenues and profits of producers like ONGC. A rising rate has also translated into higher petrol and diesel prices in the country, resulting in public outcry for price control and speculation that government could direct ONGC to subsidise fuel consumers.
ONGC's total expense for the quarter declined 6% to Rs 19,463 crore, driven mainly by about a quarter drop in 'statutory levies' to Rs 5764 crore.
Ahead of the earnings announcement, shares in ONGC closed one percent lower on Wednesday when the benchmark Sensex ended little changed.
In a note to the quarterly result, ONGC said it has received a notice from the Directorate General of Hydrocarbons (DGH) to pay the profit petroleum due to the government from the Panna Mukta and Tapti fields following an arbitration award and a court verdict.
"The company has requested DGH to keep the issue in abeyance till finality in the award is achieved. Pending the final quantification of liabilities by the Arbitration Tribunal, no provision for the same has been considered necessary. However, the same has been considered as contingent liability," the company said.
DGH had ordered ONGC, Reliance and Shell to pay $3.8 billion as the government's share of profit petroleum from the PMT fields after the English Court rejected all but one challenges to the arbitration award. RIL and Shell had challenged the award in court, which has directed the arbitration tribunal to reconsider one contentious issue and issue a fresh award.