State-run Oil & Natural Gas Corp's (ONGC) announced that its net profit during the third-quarter soared 132% to 7,083 crore on account of recovery of 1,900 crore dues from natural gas clients.

According to Chairman R S Sharma, the sharp increase in quarterly profit augured well for the energy giant, in which the administration proposes to sell 5% of its equity to lift up an approximated 13,000 crore by March.

For the nine month period ended December 2010, ONGC's net profit surged 24% at 16,133 crore.

Profit climbed in spite of an increasing subsidy burden that remained up 95% during the first nine months of 2010-11.

Sharma added that the administration must have a clear plan on how much funding ONGC would have to pay to aid state oil marketing firms sell fuel lower than cost.

"It is important for investors in the follow-on public offer," he stated.

ONGC's net realization for crude oil sales during the third quarter surged 12.3% to $64.79 per barrel as against the same period of 2009, but for the nine-month period, development was just 2.3% at $58.72 per barrel due to higher subsidy expenditure for keeping retail costs of diesel, kerosene and cooking gas below market costs.

ONGC is coerced to sell crude oil at a discount to nationalized fuel retailers that sell petroleum products at administration set costs, often below cost.

ONGC has made 5 discoveries which have been reported to the upstream regulator, the Directorate General of Hydrocarbon, Mr Sharma said.