ONGC net up 11% at Rs 14,431 cr
ONGC, country’s largest oil producer, on Monday reported its highest ever net profit of Rs 14,431 crore in 2005-06 despite a Rs 11,656 crore payout for subsidising domestic LPG and kerosene.
By PTI |
NEW DELHI: Public sector Oil and Natural Gas Corp, country’s largest oil producer, on Monday reported its highest ever net profit of Rs 14,431 crore in 2005-06 despite a Rs 11,656 crore payout for subsidising domestic LPG and kerosene.
ONGC net profit was up 11 per cent at Rs 14,431 crore in 2005-06 as opposed to Rs 12,983 crore profits in the previous year, company Chairman and Managing Director R S Sharma told a news conference here.
The company board, which met here on Monday to adopt the audited financial results, declared a final dividend of 200 per cent (Rs 20 a share), on top of 250 per cent (Rs 25 a share) interim dividend declared earlier.
ONGC turnover increased 4.3 per cent to Rs 50,556 crore in 2005-06 as comapred to Rs 48,442 crore last year.
Sharma said ONGC's subsidy burden jumped 191 per cent from Rs 4,104 crore in 2004-05 to Rs 11,956 crore in 2005-06. ONGC subsidises domestic LPG and kerosene by giving discounts on crude oil it sells to refiners.
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ONGC got $42.34 a barrel for the crude oil it produced after giving a discount of $17.32 a barrel.He, however, said the increased subsidy outgo would not impact its domestic oil and gas hunt and overseas acquisition expenditure. "Our capital expenditure last year was Rs 11,421 crore. This year it will be in excess of Rs 12,000 crore."
About 99.7 per cent of the capex was in oil and gas exploration and production while only 0.3 per cent went into downstream activities, he said.
ONGC Videsh Ltd, the company's overseas arm, he said would be the growth vehicle for ONGC as the company scouts for more oil properties in Africa, Latin America and CIS countries. OVL already has 21 projects in 13 countries.
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Sharma said the subsidy payout impacted the profit by Rs 7210 crore. Besides, ONGC was under-paid for the natural gas it sells.The company gets $1.75 per million British thermal unit (mBtu) as against the market price of $4.75 per mBtu, he said.
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ONGC Group, comprising of ONGC, its overseas subsidiary OVL and its refinery subsidiary MRPL, clocked 19 per cent growth in turnover to Rs 74,312 crore in 2005-06.The net profit of group firms added up to Rs 15,398 crore, up by 5.9 per cent from the last year's net profit of Rs 14,339 crore, he said.
OVL net profit increased 16 per cent to Rs 901 crore on a 36 per cent jump in revenues to Rs 8,171 crore in 2005-06. Its output improved 25 per cent to 6.34 million tonnes of oil equivalent (4.58 million tonnes of crude oil and 1.76 billion cubic meters of natural gas), Sharma said.
ONGC's subsidiary Mangalore Refinery and Petrochemicals Ltd (MRPL) reported a 58 per cent slid in its net profit at Rs 372 crore on account of discounts it was forced to give on LPG, petrol, diesel and kerosene to oil retailing firms.
Sharma said ONGC's crude oil production logged 24.4 million tonnes in 2005-06, down 8 per cent from 26.48 million tonnes the previous year, mainly due to disruption of production from the Mumbai High platform which was destroyed in a fire last July.
Natural gas production was maintained at 22.57 billion cubic meters, almost the same level as 22.97 bcm in 2004-05. Natural gas sale was 18.23 bcm (18.52 bcm the previous year) while value added production (VAP) was 3.428 million tonnes (3.478 million tonnes in 2004-05).
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