New Delhi: Recording a sharp rise in its third quarter net profit, state-run Oil and Natural Gas Corp Thursday said that it has also seen its earnings per barrel of crude increasing 70 percent, compared to the same period a year ago.

The net profit for the quarter under review increased to Rs.3,054 crore from Rs.2,475 crore -- an increase of 23.4 percent.

Net sales rose 22.8 percent to Rs.15,373 crore for the quarter ended Dec 31 against Rs.12,521 crore in the previous corresponding period.

The earning from each barrel of crude increased to $57.69 from $33.84, a steep increase of 70.5 percent. The subsidy discount to refiners also decreased to $18.97 from $25 a barrel, a drop of 24.2 percent.

The upstream oil major's crude production in the third quarter however decreased by 3 percent, while natural gas production rose marginally by 0.05 percent.

ONGC chairman R.S. Sharma said the company was unlikely to reach its targeted output of 25.7 million tonnes.

"Production is declining faster than estimated," Sharma said, adding: "Production is definitely under a lot of pressure."

ONGC shares dropped 1.98 percent to Rs.1,140 at the Bombay Stock Exchange Thursday.

The company made seven new discoveries during the quarter under review and has invested Rs.2,164 crore for developing a Mumbai offshore field.

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