ONGC profit falls 18%

Oil and Natural Gas Corporation (ONGC) registered a 18 per cent decline in net profit to Rs 8,644 crore in 2003-04 from Rs 10,529 crore in 2002-03. The Rs 2,690 crore subsidy given to Indian Oil Corporation, HPCL and BPCL has resulted in the decline in the profit.

ONGC announced a total dividend of Rs 3422.2 crore for 2003-04 as against Rs 42,778 crore in the previous year. Of the total dividend, an interim dividend of 140 per cent, amounting to Rs 1996.3 crore, was already paid in February 2004. The Centre's share of the total dividend is Rs 2736 crore, the highest by any corporate in the country.

The company's turnover was at Rs 32,972 crore with its contribution to the central exchequer at Rs 14,303 crore and to state governments at Rs 2,555 crore.

At the 11th annual general meeting here today, Subir Raha, chairman and managing director, said the production of crude oil went up to 26.7 mmt in 2003-04, while natural gas production reached 25.70 billion cubic metre.

While crude accounted for 69 per cent of sales, natural gas met 16.2 per cent, Raha said. He said the PSU was also undertaking modernisation and revamp of its plants for achieving greater efficiency in both offshore and onshore units.

While GAIL India has agreed to sell gas from the Tapti basin to other companies at a price higher than $3.11 per mbtu, Raha said the company was waiting for GAIL's decision on buying at a higher price.

"GAIL has agreed that we can sell gas to others at a price higher than $3.11," said Raha. British Gas had proposed to raise price by 150 per cent to $5.57.

Raha said ONGC has acquired land for opening petrol pumps across the country but "less than ten" stations would come up in the first phase. Raha said the pumps that would receive supply from the Mangalore Refinery and Petrochemicals Ltd.