ONGC net profit up 9% at Rs 14,175 cr in 2005-06

Oil and Natural Gas Corporation posted a 9-per cent rise in net profit to Rs 14,175 crore during 2005-06, despite slipping on crude oil production targets.

ONGC produced 24.4 million tonnes of crude oil during 2005-06. This is 92 per cent of the targeted 26.6-million tonnes. The company registered a net profit of Rs 12,983 crore in 2004-05.

"High international crude oil prices, exemption from paying subsidy to GAIL and selling joint venture gas at market prices were some of the factors that led to the increase in profits," Subir Raha, ONGC chairman and managing director, said today.

The turnover of the company was up 9 per cent to Rs 50,900 crore from Rs 46,712 crore in 2004-05. The company paid a subsidy of Rs 11,958 crore to oil marketing companies.

ONGC's market capitalisation crossed Rs 1,90,000 crore from Rs 1,20,000 crore during January 2005-March 2006. ONGC Videsh also recorded a 22 per cent jump in net profit to Rs 930 crore in 2005-06 from Rs 761 crore in the previous year.

Its turnover went up by 26 per cent to Rs 7,600 crore over Rs 6,026 crore recorded in 2004-05. OVL, during the previous financial year, made 10 acquisitions and divested 2 blocks.

"The blocks in Australia and Ivory coast were divested because they were not found to be prospective," Raha said.

Giving details, Raha said, while crude oil production was hit due to disruption of operations in Bombay High last year, gas and products output crossed targets.

Gas production for the year was 22.6 billion cubic metres (against a target of 21.4 BCM) and the products output was 3.4 million tonnes (against a target of 2.9 million tonnes). Even liquid petroleum gas production at 1.1 million tonnes was 119 per cent over the target.

On discoveries, Raha said ONGC had 10 oil and gas finds during 2005-06, of which two were onshore blocks, three offshore and five deep-water. Five significant finds were from the Krishna-Godavari basin blocks acquired from Cairn Energy in 2003-04.