New Delhi, Nov 10 (IANS): Oil and Natural Gas Corporation (ONGC) on Friday reported a 65.5 per cent year-on-year increase in consolidated net profit to Rs 13,734 crore for the July-Sept quarter of the current financial year due to a reduction in costs.

Revenue from operations, however, dropped by 13 per cent on year to Rs 1.47 lakh crore from Rs 1.68 lakh crore in the same period last year.

The board has recommended an interim dividend of Rs 5.75 per share for the current financial year. The company has fixed November 21 as the record date for the same.

Other income for the quarter stood at Rs 2,515 crore, compared to Rs 2,326 crore a year ago.

Total expenses for the quarter, including finance cost, was Rs 1.28 lakh crore, compared to Rs 1.61 lakh crore a year ago. Raw material costs dropped sharply to Rs 39,203 crore, from Rs 48,653 crore a year ago.

Within India, the company’s earnings from the exploration and production segment came down with offshore revenue falling 11 per cent to Rs 11,638.62 crore and onshore revenue declining 7 per cent to Rs 23,468.64 crore.

The company said that reduction in oil and gas output can primarily be attributed to decline in some of its old fields. To counter this decline, ONGC said it is taking proactive steps by implementing well interventions and advancing new well drilling activities within these fields.