ONGC declares impressive Annual Performance, notifies two more discoveries, to invest Rs. 4124 crore more in KG Offshore

In its 243rd Board Meeting on 29th May, 2013, ONGC presented an impressive Annual Financial Result for FY’13 while declaring two new discoveries in May 2013.

The two new notified discoveries are:

New Prospect Discovery:

1.

KGOSN041NANL#2, NELP Block KG-OSN-2004/1, KG Shallow Offshore basin.

Exploratory well KGOSN041NANL#2 in NELP Block KG-OSN-2004/1 in KG Shallow Offshore basin was drilled to a depth of 2000m.

Depth Interval 1231 – 1249m, on conventional testing flowed gas @ 66601 m3/day through ¼” choke.

This is the 4th discovery in this block, adding further value towards making it a commercial proposition.

New Pool Discovery:

1.

GK-42 # 3, (GK-28 PML, Kutch Shallow Offshore, Western offshore basin)

Exploratory well GK-42 # 3 in GK-28 PML, Kutch Shallow Offshore, Western offshore basin was drilled to a depth of 1480 m.

Interval 1274.5 – 1276.5m, on conventional testing produced gas @ 2,24,544 m3/day.

The new pool discovery will add value to GK-28/GK-42 areas which ONGC plans to put on production, adding a new producing basin in geological map of India.

Performance Highlights FY’13

  • Total 22 Discoveries made in FY’13 which includes 12 New Prospects (4 offshore, 8 Onshore) and 10 New pools (5 offshore, 5 onshore).
  • ONGC’s ultimate reserve accretion of 84.84 MTOE from domestic acreages is highest in last 22 years.
  • Domestic oil and gas production (including JV share) was at 52.41 mtoe against 52.43 in FY’12 (Oil 26.12 mtoe against 26.92 mtoe in FY’12 and Gas 25.33 bcm against 25.51 bcm in FY’12)
  • Net Profit decreases 40%, from ₹ 5,644 Crore in Q4FY’12 to ₹ 3,387 Crore in Q4FY’13. Annual net profit of ONGC decreases 16.7%, from ₹ 25,123 Crore in FY’12 to ₹ 20,926 Crore in FY’13.
  • Discount to OMCs to meet their under-recoveries decreased to ₹ 12,312 Crore as compared to ₹ 14,170 Crore in Q4 FY’12. For FY’13 this was ₹ 49,421 Crore as compared to ₹ 44,466 Crore in FY’12 - up by 11.1 %.
  • Dividend: Recommended payout of final dividend of ₹ 0.5/- (paise fifty only) per equity share of ₹ 5 each fully paid up for the Financial Year 2012-13 which works out to 10% on the equity share of ₹ 5 each. This is in addition to an interim dividend of ₹ 9/- (Nine rupee only) per equity share on 8,555,490,120 equity shares of ₹ 5 each. Total dividend payout would be ₹ 428 Crore against ₹ 8,342 Crore in FY’12)
  •  

ONGC Exploration & Production (E&P) Highlights:

B.1 Exploration

1. Total 22 Discoveries made in FY’13 which include 12 New Prospects (4 Offshore, 8 Onshore) and 10 New pools (5 Offshore, 5 onshore).
2. ONGC’s ultimate reserve accretion of 84.84 MTOE from domestic acreages is highest in last 22 years.
3. Reserve Replacement Ratio of 1.84 (against RRR of 1.79 in FY’12) is the 8th consecutive year of maintaining reserve replacement over one.

B.2 Reserve Accretion in 2012-13

  Ultimate (MTOE)
Domestic 84.84
JV Domestic 4.23

B.2 Reserve Accretion in 2012-13

Year Ultimate Reserve Accretion (MTOE) Production MTOE Reserve Replacement Ratio
2007-08 63.82 48.28 1.32
2008-09 68.90 47.85 1.44
2009-10 82.98 47.78 1.74
2010-11 83.56 47.51 1.76
2011-12 84.13 47.03 1.79
2012-13 84.84 46.11 1.84

B.4 Aggregate (Balance) Reserves (MTOE) as on 31.03.2013

  ONGC JV OVL Total
1P 741.00 31.93 196.41 969.34
2P 1021.24 34.15 395.61 1451.00
3P 1290.52 35.99 432.92 1759.43

C. Production

Production Performance – FY’13

  FY’13 FY’12
Crude Oil – ONGC (MMT) 22.56 23.71
Crude oil – JVs – (MMT) 3.56 3.21
Total Crude Oil – (MMT) 26.12 26.92
Gas – ONGC (BCM) 23.55 23.32
Gas – JVs (BCM) 2.19 2.19
Total Gas (BCM) 25.33 25.51
Total VAPs ( MMT) 03.15 03.22

D. Financials

(₹in Crore)
Particulars Q4FY’13 Q4FY’12 % Var FY’13 FY’12 % Var
Sales Income 21,460 18,976 13.1 82,552 76,130 8.4
Net Profit 3,387 5,644 -40 20,926 25,123 -16.7
  • 64.6% of the Turnover derived from sale of Crude Oil(incl. JV), 20 % from sale of Natural Gas(incl.JV), 15.4% from sale of Value-Added-Products (VAPs) viz. LPG, Naphtha etc

E.1 Subsidy Impact on Profit

 

(₹in Crore)
  2012-13 2011-12 2010-11 2009-10 2008-09
Gross Discount 49,421 44,466 24,892 11,554 28,225
Impact on Statutory Levies 7,362 6,667 3,558 1,629 4,292
Impact on Profit before tax 42059 37,799 21,334 9,925 23,933
Impact on Profit after tax 28,413 25,535 14,247 6,551 15,798

E.2 Impact of Discount on Rate of Crude Oil:

 

Particulars FY 2012-13 FY 2011-12
 
Q4
FY
Q4
FY
A. In USD per Bbl        
Pre Discount Rate 113.97 110.74 121.64 117.40
Discount 63.12 62.89 77.32 62.69
Post Discount Rate 50.85 47.85 44.32 54.71
B. /USD Ex. Rate 54.17 54.45 50.29 47.95
C. in ₹ per Bbl        
Pre Discount Rate 6,174 6,030 6,117 5,629
Discount 3,419 3,424 3,888 3,005
Post Discount Rate 2,755 2,606 2,229 2,624

F. Consolidated Group Results of ONGC

Group consisting of:

1. Oil and Natural Gas Corporation Ltd
Subsidiaries:
2 ONGC Videsh Ltd (Consolidated)
3 Mangalore Refinery and Petrochemicals Ltd (Consolidated)
4 Joint Venture Entities:
i Petronet LNG Ltd
ii Petronet MHB Ltd
iii Mangalore SEZ Ltd (unaudited)
iv ONGC Mangalore Petrochemicals Ltd
v ONGC Petro Additions Ltd (unaudited)
vi ONGC Tripura Power Company Ltd (consolidated)
vii ONGC TERI Biotech Ltd
viii Dahej SEZ Ltd (unaudited) (unaudited)

5. Associate:

i Pawan Hans Helicopters Ltd (unaudited)
1. Group Turnover of ₹ 165,849 Crore (up 9.8 % from ₹ 151,100 Crore in FY’12)
2. Net Profit of the Group ₹ 24,220 Crore (down 13.9% from ₹ 28,144 Crore in FY’12)

F.1 ONGC Videsh Ltd. (OVL) in FY’13

1. Production of 7.264 MTOE as compared to 8.753 MTOE in FY’12 (Less production primarily due to unrest in Syria and Sudan/ South Sudan)
2. Total revenue of ₹ 18,029 crore against ₹ 22,637 crore in FY’12
2. Highest ever Profit after tax ₹ 3,929 Crore, up 44 % over ₹ 2,721 Crore in FY’12
2. OVL has 32 projects (11 producing, 14 exploration, 5 development and 2 pipeline) spread over 16 countries. 11 producing assets are spread in 9 countries namely Sudan, South Sudan, Russia, Vietnam, Brazil, Columbia, Venezuela, Syria and Azerbaijan.

F.2 Mangalore Refinery & Petrochemicals Ltd. (MRPL) in FY’13

1. Highest ever Crude Thru’put 14.40 MMT, up from 12.82 MMT in FY’12
2. Highest ever Turnover of ₹ 68,834 Crore, up 19 % from ₹ 52,207 Crore in FY’12.
2. Net loss of ₹ (-757) Crore

G. Dividend payout during the last five years

(₹ in Crore)
Year PAT Dividend Tax on Dividend Payout %
    % ₹ in crore   Including Dividend Tax Excluding Dividend tax
2008-09 16,126 320 6,844 1,163 49.66 42.44
2009-10 16,768 330 7,058 1,187 49.17 42.09
2010-11 18,924 330 7,486 1,215 45.98 39.56
2011-12 25,123 195* 8,342 1,329 38.49 33.20
2012-13 20,926 190 8,128 1,319 45.14 38.84

* Based on number of shares after split of shares and issue of bonus shares

Investment: ONGC Board approved an investment of USD 751.65 Million (4124.35 Crore) for the Integrated development of Vashishta and S-1 fields for production of natural gas from KG offshore. The development would comprise 4 subsea wells tied back to onshore processing facility at Odalarevu. The project is expected to be completed by April 2016. Vashishta field (water depths of 500 to 700 meters) can deliver an ultimate recovery of 9.56 BCM over a period of 9 years, with peak production of 3.55 MMSCMD for the first five years. S1 field (water depths of 250 meters) can deliver an ultimate recovery of 6.22 BCM over a period of eight years (peak production of 2.2 MMSCMD for the first five years).

Other highlights of 2012-13

1. ONGC sets a new water-depth drilling record of drilling up to 10,385 feet of water in Krishna Godavari Basin
2. The additional reserves discovered in D-1 field makes it the 3rd biggest oil field of ONGC. ONGC christens the oil field as ‘N B Prasad’, after its visionary chairman, considered as the architect of India’s offshore oil industry.
3. Highest-ever PAT for OVL during 2012-13
During FY’13, ONGC Videsh Limited (OVL) earned the highest-ever profit of 3,929 Crore, an increase of 44.4% as compared to the previous year. Net worth of OVL increased from 19,941 Crore to 29,184 Crore due to increase in equity share capital of ONGC from 1,000 Crore to 5,000 Crore. The oil production during the year was lower mainly due to adverse geo-political situation in Syria and South Sudan.
4. ONGC registers one of the largest CDM projects in world
ONGC has registered the OTPC Power Project of its ONGC Tripura Power Corporation Limited (OTPC) as a Clean Development Mechanism (CDM) project with the United Nations Framework Convention on Climate Change (UNFCCC). This 726.6 MW gas-based power generation plant in Tripura is a fuel-substitution project, which would mitigate over 1.6 million tons of Carbon-dioxide emissions per year for the next 10 years. Fetching 1.6 million carbon credits per year, this is one of the biggest CDM projects in the world. With this registration, ONGC now has 10 registered CDM projects- a rare feat globally.
5 Trunk Pipeline from Khoraghat GGS1 to Borholla GGS commissioned
The Trunk Pipeline from Khoraghat GGS1 to Borholla GGS was commissioned on May 11, 2013. The trunk pipeline is of 8” size and 65 Km long, crossing rivers in four places. The entire crude from Khoraghat and Nambar fields will now be transported through this pipeline to Borholla GGS, reducing the tanker transportation cost as well offset the environmental pollution arising out of the operations. The project cost is around Rs 49.8 Crores and is expected to save Rs. 3.5 Crore per year.
6. ONGC rises to 155th position in Forbes Global ranking, up 16 notches from last year. Declaring the audited financial results and overall annual results of ONGC Group for FY’13 to the media on 29th May 2013, soon after the ONGC Board meeting, CMD Mr. Sudhir Vasudeva said, ‘Our focus on our long-term strategy Perspective Plan 2030 has gathered momentum. This fiscal’s score card showcases our record performance in Reserve accretion, Sustainability and sound Financial management. We would renew our focus on the key performance indicators that will guide ONGC to reach greater heights in the coming years.’ While he complimented employees for an all-round impressive performance, he also thanked all shareholders for understanding various compulsions of the energy major and yet reposing sustained confidence and trust in its management.

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Conversion Rates:
INR/1 USD: 54.45 (average for the Year FY’13)
INR/1 USD: 47.95 (average for the Year FY’12)

Listing references (as on 29th May 2013):

ONGC BSE – ₹ 333.35
NSE – ₹ 332.25
MRPL BSE – ₹ 43.40 NSE – ₹ 43.45

Issued By Oil and Natural Gas Corporation Ltd. Corporate Communications, New Delhi, Phone: +91-11-23320032 Tele-Fax: 011-23357860 Mail: ongcdelhicc@ongc.co.in