Business Daily from THE HINDU group of publications
Wednesday, Oct 31, 2007
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Business Daily from THE HINDU group of publications Wednesday, Oct 31, 2007 ePaper | Mobile/PDA Version |
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Financial Performance Corporate Results - Petroleum
Our Bureau New Delhi, Oct. 30 The surge in international oil prices has boosted ONGC’s profitability in the second quarter of the current financial year. The State-owned exploration and production major has reported a 22-per-cent rise in net profit for the quarter ended September 30 to Rs 5,097 crore (Rs 4,174 crore). Sales revenue for the quarter rose 9 per cent to Rs 15,463 crore (Rs 14,147 crore). The profitability was despite paying Rs 3,799 crore to subsidise cooking fuel prices. ONGC earned $55.93 a barrel for crude oil it produces after giving discounts to State-refiners — IOC, BPCL, HPCL — as part of subsidy sharing by the upstream companies. This subsidy payout of Rs 3,799 crore impacted ONGC’s profit to the extent of Rs 2,292 crore. For the first half of the current fiscal subsidy payout was Rs 7,448 crore. For the first halfONGC posted a net profit of Rs 9,708 crore. The sales revenuestood at Rs 29,191 crore. During the period, it earned $53.09 per barrel. Speaking on the company’s performance, Mr R.S. Sharma, Chairman. ONGC, said: “This shows that the fundamentals of the company are strong. We expect the growth trend to continue in the coming quarters. It will be done through increase in production and cut in expenditure.” Gas pricingHowever, the issue of gas pricing continues to be a cause for concern for the company. Mr Sharma said the company would prefer the administered price of gas to be about Rs 4.5 per cubic metre, which translates into $2.5 per mBtu, as the agreed consumer price is now $4.2 per mBtu, thus, the Government should consider ONGC’s request for APM gas. The company plans to spend Rs 18,346 crore on exploration and production in 2007-08, up from Rs 13,305 crore the previous year. In 2008-09, it plans to invest Rs 19,338 crore. ONGC said it made nine hydrocarbon finds during April- September this year. It plans to invest Rs 121,318 crore in expansion programmes during the current Five-Year Plan (2007-12). Out of this, Rs 20,000 crore would be on the east coast , excluding deepwater production. A sum of Rs 75,984 crore would be invested in domestic projects and Rs 45,334 crore overseas. A substantial part of these investments — around Rs 12,000 crore — would go into overhauling the ageing infrastructure in oil and gas fields in the Arabian Sea, which will help augment production from 250,000 barrels per day to 270,000 bopd there. The company’s shares closed at Rs 1,219.55 on the BSE. ONGC Q1 net up 12%, turnover dips 6% ONGC sees marginal rise in Q2 net More Stories on : Financial Performance | Petroleum | Oil & Natural Gas Corporation Ltd
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