ONGC declares an impressive Annual Performance while notifying two more discoveries

Financial Result for FY’12 while declared two new discoveries.

Two new notified discoveries are:

New Prospect Discovery:

I. Bantumilli South # 1, (1B Nomination PEL, Krishna Godavari Onland Basin, Andhra Pradesh)

Exploratory well Bantumilli South # 1, in 1B Nomination PEL of Krishna Godavari Onland Basin in the state of Andhra Pradesh was drilled to a depth of 4232.3 m. On testing (barefoot) the interval 4221 – 4232.3 m produced gas @ 98,010 m3/day through 4 mm choke. This high potential discovery has further consolidated the prospectivity of the Nandigama arenaceous unit, already proven in nearby Malleswaram- Nandigama area. The discovery well is situated 22 km west of Narsapur and 20 km east of Bantumilli town in West Godavari district of Andhra Pradesh state.

New Pool Discovery:

II. Vadtal # 5 (NELP Block: CB-ONN-2004/2, Cambay Onland Basin, Gujarat):

Well Vadtal # 5 in NELP Block CB-ONN-2004/2, Cambay Onland Basin, in the state of Gujarat was drilled to a depth of 3615 m. The intervals 1598 – 1604 m in Kalol formation (equivalent of Middle Eocene age) has confirmed the presence of oil. This oil discovery in Kalol formation, in addition to already notified Chhatral discovery (in May, 2012) in the same well will boost the efforts of ONGC towards speedy development of this block. This discovery well is situated 14 km to the west of Anand town in Anand district of Gujarat. Performance Highlights FY’12

  • Total 23 Discoveries made in FY’12 which include 15 New Prospects (9 offshore, 6 Onshore) and 8 New pools (1 offshore, 7 onshore).
  • ONGC’s ultimate reserve accretion of 84.13 MTOE from domestic acreages is highest in last 2 decades.
  • Domestic oil and gas production (including JV share) maintained at 52.43 mtoe against 52.60 in FY’11 (Oil 26.92 mtoe against 27.28 mtoe in FY’11 and Gas 25.51 bcm against 25.32 bcm in FY’11)
  • Net Profit of Q4 FY’12 increases 102%, from Rs 2791 crore to Rs 5644 crores in FY’11.
    Annual net profit of ONGC increases 33%, from ` 18,924 Crore in FY’11 to Rs 25,123 crores in FY’12.
  • Discount to OMCs to meet their under-recoveries increased to Rs 14170 crores as compared to ` 12,136 Crore in Q4FY’11. For FY’12 this was ` 44,466 Crore as compared to ` 24,892 Crore in FY’11- up by 79%.
  • Dividend: Recommended payout of final dividend of ` 2/- (Rupees two only) per equity share of ` 5 each fully paid up for the Financial Year 2011-12 which works out to 40 % on the equity share of ` 5 each. This is in addition to an interim dividend of ` 7.75/- (Seven rupee and seventy five paise only) per equity share on 8,555,528,064 equity shares of ` 5 each. Total dividend payout would be ` 8,342 Crore against `7,486 crore in FY’11)

ONGC Exploration & Production (E&P) Highlights:

B.1 Exploration

  • Total 23 Discoveries made in FY’12 which include 15 New Prospects (9 offshore, 6 Onshore) and 8 New pools (1 offshore, 7 onshore).
  • ONGC’s ultimate reserve accretion of 84.13 MTOE from domestic acreages is highest in last 2 decades.
  • Reserve Replacement Ratio of 1.79 (against RRR of 1.76 in FY’11) is the 7th consecutive year of maintaining reserve replacement over one.

B.2 Reserve Accretion in 2011-12

  Ultimate (MTOE)
Domestic 84.13
JV Domestic 1.31

B.3 Reserve Replacement ratio of ONGC-operated domestic areas

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

B.4 Aggregate (Balance) Reserves (MTOE) as on 31.03.2012

  ONGC JV OVL Total
1P   737.36   33.12   193.38   963.86  
2P   998.37   35.26   392.70   1426.33  
3P   1250.24   37.28   425.94   1713.46  

C. Production

Production Performance – FY’12

  FY’11 FY’12
Crude Oil – ONGC (MMT) 23.71 24.42
Crude oil – JVs – (MMT) 3.21 02.86
Total Crude Oil – (MMT) 26.92 27.28
Gas – ONGC (BCM) 23.32 23.09
Gas – JVs (BCM) 2.19 02.23
Total Gas (BCM) 25.51 25.32
Total VAPs ( MMT) 03.22 03.13

D. Financials

(` in Crore)
Particulars Q4FY’12 Q4FY’11 % Var FY’12 FY’11 % Var
Sales Income 18,976 15,554 22 76,130 66,152 15
Net Profit 5,644 2,791 102 25,123 18,924 33
1 60% of the Turnover derived from sale of Crude Oil, 17% from sale of Natural Gas, 13% from sale of Value-Added-Products (VAPs) viz. LPG, Naphtha etc

E.1 Subsidy Impact on Profit

(` in Crore)
  2011-12 2010-11 2009-10 2008-09 2007-08
Gross Discount 44,466 24,892 11,554 28,225 22,001
Impact on Statutory Levies 6,667 3,558 1,629 4,292 1,942
Impact on Profit before tax 37,799 21,334 9,925 23,933 20,059
Impact on Profit after tax 25,535 14,247 6,551 15,798 13,241

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

Particulars FY 2011-12 FY 2010-11
  Q4 FY Q4 FY
  1. In USD per Bbl
       
Pre Discount Rate 121.64 117.40 108.90 89.41
Discount 77.32 62.69 70.15 35.64
Post Discount Rate 44.32 54.71 38.75 53.77
B. `/USD Ex. Rate 50.29 47.95 45.26 45.58
C. in ` per Bbl        
Pre Discount Rate 6,117 5,629 4,929 4,075
Discount 3,888 3,005 3,175 1,625
Post Discount Rate 2,229 2,624 1,754 2,451

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 ` 150,185 Crore (up 22% from ` 122,769 Crore in FY’11)
2 Net Profit of the Group ` 28,144 Crore (up 14% from ` 22,456 Crore in FY’11)

F.1 ONGC Videsh Ltd. (OVL) in FY’12

1 Production of 8.753 MTOE as compared to 9.448 MTOE in FY’11 (Less production primarily due to unrest in Syria and Sudan/ South Sudan)
2 Highest ever revenue of Rs. 22,637 crore against Rs. 18,671 crore in FY’11
3 Profit after tax Rs. 2,721 Crore, up 1.1% over Rs. 2,691 Crore in FY’11
4 OVL has acquired 25% participating interest in Satpayev Block, Kazakhstan
5 OVL has 30 projects (10 producing, 14 exploration, 5 development and one pipeline) spread over 15 countries. 10 producing assets are spread in 8 countries namely Sudan, South Sudan, Russia, Vietnam, Brazil, Columbia, Venezuela and Syria.

F.2 Mangalore Refinery & Petrochemicals Ltd. (MRPL) in FY’12

1 Highest ever Crude Thru’put 12.82 MMT, up from 12.64 MMT in FY’11
2 Highest ever Turnover of Rs. 52,207 Crore, up 19% from Rs. 43,800 Crore in FY’11.
3 Profit-after-tax Rs. 909 Crore, down 23% Rs. 1,177 Crore in FY’11
4 MRPL commissioned its 3 mmtpa CDU/ VDU on March 25, 2012

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
2007-08 16,702 320 6,844 1,163 47.95 40.98
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

* Based on number of shares after split of shares and issue of bonus shares Declaring the audited financial results and overall annual results of ONGC Group for FY’12 to the media on 29th May 2012, soon after the ONGC Board meeting, CMD Mr. Sudhir Vasudeva said, ‘Our focus on Reserve accretion, brown field management and sound financial management have always paid the dividend. However, we are renewing our focus and charting out a Perspective Plan 2030 that will guide ONGC to scale 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 company and yet having tremendous confidence and trust in its management.

For further information, please visit our website www.ongcindia.com

Conversion Rates:

INR/1 USD: 47.95 (average for the Year FY’12)

INR/1 USD: 45.58 (average for the Year FY’11)

Listing references (as on 29th May 2012):

ONGC: BSE – Rs. 256.35

NSE – Rs. 256.25

MRPL: BSE – Rs.57.95

NSE – Rs.57.65


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