New Delhi: Country's upstream oil and gas major ONGC registered an increase of 11 per cent in its profits and 22 per cent in its revenue despite a 78 per cent increase in subsidy discount in the first half of the financial year 2007.
After its board meeting in New Delhi, ONGC said its crude production during the period went up 4.6 per cent to 12.86 million tonnes (MT) from 12.29 MT in the same period last year.
Sales revenue went up by 22 per cent at Rs 28,823 crore from Rs 23,682 crore during the same period last fiscal while the net profit stood at Rs 8,293 crore, up 11 per cent from Rs 7,457 crore.
Natural gas production was down due to floods affecting operation at ONGC's Hazira Gas Processing Plant. The plant was completely shut-down for 10 days from August 7, 2006, and then picked up normal production pace in stages, before restoring full production on September 8, 2006.
H1 (FY-07)
H1 (FY-06)
Q2 (FY-07)
Q2 (FY-06)
Crude Production
12.86 MT (up 4.6%)
12.29 MT
6.39 MT
5.81 MT
Natural Gas Production
11.00 BCM (0.03% more than target)
11.20 BCM
5.18 BCM
5.50 BCM
Turnover (Net of Subsidy Discount)
Rs 28,823 Crore
Rs 23,682 Crore
Rs 14,146 Crore
Rs 12728 crore
Subsidy Discount
Rs 10152 Crore
Rs 5704 Crore
Rs 5032 Crore
Rs 2876 Crore
Crude Price/Barrel (Net of Subsidy Discount)
$45.20
$41.00
$45.42
$45.78
Net profit
Rs 8,293 Crore
Rs 7,457 Crore
Rs 4,174 Crore
Rs 4,138 Crore
Earning-Per-Share (EPS)
Rs 58.16
Rs 52.30
Rs 29.27
Rs 29.02
A production of 0.55 BCM was affected. Financial implication of the shut-down was Rs 485 crore.
Also, the Board appointed on Thursday a sub-committee of Directors to finalise the allotment of Bonus Shares. October 30, 2006 has been fixed as the 'Record Date' for reckoning the entitlement for Bonus Shares by the Board, BSE and NSE have been advised accordingly.
The notice fixing this 'Record Date' was publicised for information of the investors. The shareholders are expected to receive the Bonus Shares by the 2nd half of November 2006.
Earlier, shareholders, in their 13th Annual General Meeting held on September 19, 2006, had approved issue of Bonus Shares in the ratio of 1:2 by capitalising a sum of Rs 712.958 crore, comprising of Rs 172.57 crore standing to the credit of Share Premium Account and balance of Rs 540.39 crore from the General Reserves.
The ONGC Board approved the Revised capital expenditure (Capex) outlay of Rs 16,522 crore for 2006-07 against the approved Budget Estimate of Rs 14,354 crore.
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The capital outlay for Budget Estimate 2007-08 has been further increased to Rs 18,359 crore. The increase is mainly due to increased expenditure on Exploration (both Survey and Drilling) and also larger number of schemes.
The Board also approved a Capex outlay of Rs 82,670 crore for the Eleventh Five Year Plan (2007-2012). ONGC has proposed to produce over 140 MT of crude oil during the Eleventh Plan, an increase of 10 MT over the Tenth Plan.
ONGC has proposed to develop marginal fields in Western Offshore Basin and has plans to commercially produce Coal Bed Methane (CBM) and Gas from Underground Coal Gasification (UCG) Projects, making India only the fourth country in the world after the US, China and Australia to produce CBM Gas commercially (2011-12).
The board also approved the incorporation of ONGC Petro-Additions Ltd (OPaL) following its earlier approval during the 158th Board meeting on August 8, 2006 to implement a global scale Petrochemicals Complex within Dahej SEZ through a SPV company.
OPaL will have 26 per cent equity participation of ONGC, 5 per cent by GSPC and balance by strategic investors and financial institutions. With this approval, OPaL will embark on a fast-track implementation of the mega Petrochemicals Project involving an estimated investment of Rs 13,600 crore along with global scale cracker and downstream polymer plants.
This will be commissioned around mid 2010, catalising significant economic development in Western India and the country as a whole.
The ONGC Board also approved the incorporation of Mangalore Petrochemicals Ltd (MPL), pursuant to its earlier approval to develop SEZ and associated projects at Mangalore.
MPL will have with 46 per cent equity participation by ONGC, 3 per cent by MRPL and the balance by banks and financial institutions.
This company will implement the Aromatics Petrochemicals Complex within Mangalore SEZ in Karnataka, with an estimated investment of Rs 4,852 crore as a value-addition initiative to the Naphtha stream of MRPL, to be commissioned around end 2010.
The Board approved the formation of a JV with TERI for oil-field services for monetisation of microbial techniques ('Lab to Oil Wells') developed and patented by TERI and ONGC.
The JV with equal participation by ONGC and TERI will apply tailor-made bio-technology solutions to improve flow from oil wells of ONGC, OIL and other JV and private Indian players, besides marketing the services in West Asia. While TERI will provide the technology, ONGC will manage field implementation and marketing.
The Board also approved ONGC's first mega 'Gas-to-Wire' project in Tripura to monetise significant idle and stranded gas production potential from wells there. ONGC has established a production potential of 4 MMSCMD and will increase it to 5 MMSCMD by boosting exploration.
ONGC will implement mega 2X370 MW advanced class combined cycle power plant to be located at Palatana.
The generated power will be transmitted by utilising the services of another SPV company NEPTC (PGCIL and ONGC to take up 26 per cent and 15 per cent equity respectively, and 59 per cent with private partner) for up-linking with PGCIL Grid at Bongaigaon.
The Board also decided to review the transmission SPV structure in order to optimise the transmission risk of the project, through a sub-committee of the Board. This project is estimated to cost around Rs 2,087.6 crore and will be implemented by end 2009.
The generated power will cater to the northeast demand and will also be transmitted to Northern Grid to feed demand in north India.
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