ONGC declares results for Q2 FY’15, notifies two more discoveries and announces two large investment projects

In its 263rd Board Meeting held on 14th November 2014, ONGC presented the Quarterly results for the quarter ended 30th September 2014.

1. ONGC Performance Highlights : Q2 FY15

  • Q2 FY’ 15 Gross Revenue 20,512 Crore (against ₹ 22,487 Crore in Q2 FY’14)
  • Net Profit 5,445 Crore in Q2 FY’15 as against ₹ 6,064 Crore in Q2 FY’14. Less Profit is mainly due to unfavorable price variance.
  • ONGC notifies two more hydrocarbon discoveries; one new Prospect (GKS092NAA-1 (NELP block GK-OSN-2009/2) at Kutch Offshore shallow water) and one New Pool discovery at well RSAK (R-184) in Rudrasagar ML Block, North Assam Shelf, A&AA Basin. With this, ONGC notified total 10 discoveries (5 new Prospects and 5 new Pools) so far in this fiscal year.
  • ONGC’s Crude Oil production looks up; standalone Crude oil production registers 2.1% growth (5.21 MMT against 5.10 in Q2 FY’14) and 1.15% growth in H1 FY’15 (10.32 MMT against 10.20 MMT in H1 FY’14)
  • Two major investment decisions taken in 263rd Board Meeting:
  • Phase-III Redevelopment of Mumbai High South at a Capital investment of ₹ 6,069 Crore.
  • Integrated development of Mukta, Bassein & Panna formations in Western Offshore at a cost of ₹ 4,620 Crore

2. Production Performance (ONGC +Share in JVs)

  Q2 H1 Actual, FY’14
  FY'15 FY'14 % Var FY'15 FY'14 % Var
Crude Oil – ONGC (MMT) 5.206 5.100 2.08 10.317 10.200 1.15 20.440
Crude oil – JVs – (MMT) 0.868 0.921 -5.75 1.813 1.828 -0.82 3.747
Condensate 0.353 0.465 -24.09 0.746 0.950 -21.47 1.806
Total Crude Oil – (MMT) 6.427 6.486 -0.91 12.876 12.978 -0.78 25.993
Gas – ONGC (BCM) 5.327 5.816 -8.41 10.980 11.591 -5.27 23.284
Gas – JVs (BCM) 0.349 0.396 -11.87 0.732 0.802 -8.73 1.567
Total Gas (BCM) 5.676 6.212 -8.63 11.712 12.393 -5.50 24.851
Value Added Products (KT) 689 767 -10.17 1389 1505 -7.71 3016

3. Financial Results

₹ in Crore)
Particulars Q2 H1 FY'14
  FY'15 FY'14 % Var FY'15 FY'14 % Var
Gross Revenue 20,512 22,487 (8.8) 42,430 41,860 1.4 84,201
Profit Before Tax (PBT) 7,936 9,089 (12.7) 15,133 14,873 1.7 32,432
Profit After Tax (PAT) 5,445 6,064 (10.2) 10,227 10,080 1.5 22,095

4. Impact of Under-recovery Discount to OMCs on Profits

₹ in Crore)
Details Q2 H1 FY'14
FY'15 FY'14 FY'15 FY'14
Gross Discount 13,641 13,796 26,841 26,418 56,384
Impact on Statutory Levies 2,060 2,251 4,055 4,070 8,628
Impact on Profit Before Tax 11,581 11,545 22,786 22,348 47,576
Impact on Profit After Tax 7,645 7,621 15,041 14,752 31,524

5. Impact of Discount on Retention Price of Crude Oil:

Particulars Q2 H1 FY'14
FY'15 FY'14 FY'15 FY'14
A. In USD per Bbl
Pre-Discount Price 102.13 109.03 105.69 105.91 106.72
Discount 60.78 64.17 61.53 63.33 65.75
Post-Discount Price 41.35 44.86 44.16 42.58 40.97
B. Average ₹/USD Exchange Rate 60.59 62.13 60.19 59.11 60.50
C. in ₹ per Bbl
Pre-Discount Price 6,188 6,773 6,362 6,260 6,456
Discount 3,683 3,987 3,704 3,744 3,978
Post-Discount Price 2,505 2,786 2,658 2,516 2,478
D. Discount to Pre-Discount Price (%) 60 59 58 60 62

6. ONGC Videsh Ltd.

  • Crude oil production in H1 FY’15 increased by 1.22% (2.74 MMT against 2.71 in H1 FY’14), whereas gas production increased by 10.43% (1.56 BCM against 1.41 BCM in H1 FY’14)
  • Revenue from operations ₹ 11,362 Crore in H1 FY’15 (up 12.94% over ₹ 10,060 Crore in H1 FY’14)
  • Profit after tax (PAT) ₹ 2,068 Crore in H1 FY’15 (up 9.65% over ₹ 1,886 Crore in H1 FY’14)
  • Strategic Alliances: ONGC Videsh signs PSCs for two On-land exploration blocks in Myanmar
    ONGC Videsh signs Heads of Agreements with PetroVietnam Exploration Production Corporation Ltd. (PVEP), Vietnam
    ONGC Videsh signs Memorandum of Understanding with YPF S.A., the major oil producing company of Argentina.
  • ONGC Videsh is operating 35 projects (13 producing, 4 discovered/ under-development, 16 exploration and 2 pipelines) in 16 countries.

7. Mangalore Refinery and Petrochemicals Ltd (MRPL)

  • MRPL achieved a throughput of 6.67 MMT in H1 FY’15 against 6.96 MMT during H1 FY’14. The decrease is due to plant upsets while commissioning of new units resulting in non-availability of secondary processing units.
  • Registered Turnover of ₹ 33,423 Crore in H1 FY’15 against ₹ 35,688 Crore in H1 FY’14.
  • Loss after Tax in H1 FY’15 was ₹ 988 Crore against loss of ₹ 218 Crore in H1 FY’14.
  • Phase-III expansion and upgradation project is complete, while stabilisation of various units is in process.

8. Other Highlights

8.1 Two Discoveries notified between 262nd and 263rd Board Meeting are:

  • GKS092NAA-1 in NELP block GK-OSN-2009/2 at Kutch shallow water – a new Prospect
    The well GKS092NAA-1 (NELP block GK-OSN-2009/2) at Kutch Offshore shallow water (75 km off the coast) was drilled to a Target Depth of 4250m. Interval 898-900m in Early Eocene, Jakhau Formation on testing flowed gas @1,15,168 m3/day through ½” choke. This new discovery has provided lead for further exploration in the block. The block is operated by ONGC (40%), while other partners are AWEL (30%) (Adani Welspun Exploration Limited) & IOCL (30%).
  • Rudrasagar-184 (RSAK) in Rudrasagar ML block- A new Pool
    Exploratory Well RSAK (R-184) was drilled in Rudrasagar ML Block in the North Assam Shelf, A&AA Basin. It probed an independent structural closure towards southwest of main Rudrasagar field. On testing the interval 3294-3291.5m in Barail Formation, the Well produced oil on self-flow at the rate of 47.8 m3/d through 6 mm bean. Additionally another interval 3211-3209.5m has also been identified as potential hydrocarbon bearing zone through log based analysis which will be tested later. This discovery will provide lead for the field growth towards south-west part of the main Rudrasagar Field.

Following eight more discoveries had been notified earlier:

New Prospects Discoveries

  • YS-9-1 (Yanam PML (Additional area) block, KG shallow offshore basin).
  • Rupal-2 (NELP block CB-ONN-2005/4, in Western On-land basin in the state of Gujarat)
  • Vadatal#10 (VDAH) in NELP block CB-ONN-2004/2
  • TK#3A in PEL block in Cachar, Assam & Assam Arakan Basin

New Pool Discoveries

  • C-1#7 (North Tapti PML, Western Offshore Basin).
  • C-1#8 (North Tapti PML, Western Offshore Basin).
  • Gandhar # 699 (Gandhar Extn-VI PML, Western Onshore Basin).
  • GS-29-10 (GS-29-AJ) in GS-29 PML extension in KG Offshore basin

8.2 Investment Decisions:

  • Redevelopment of Mumbai High (South) – Phase III
    The Board of ONGC approved Phase III redevelopment of its giant offshore field - Mumbai High (South) involving a capital investment of Rs 6,069 Crore. The implementation of the project will lead to incremental gain of 7.547 million tonne (MMT) crude oil and 3.864 billion cubic meter (BCM) gas by 2030. This project is designed to carry forward the success of the previous two phases of redevelopment project and give a new lease of life to the giant field. (Separate Press Release also issued)
  • Integrated Development of Mukta, Bassein and Panna Formations ONGC Board approved investment of Rs. 4,620 Crore to enhance recovery through Integrated Development of Mukta, Bassein and Panna Formations from main Bassein gas field in Western Offshore. The incremental production is expected to start in 2014-15 with peak incremental production rate of 10 MMSCMD of gas, 950 barrels of oil and about 1100 cubic meters of condensate per day by 2017-18. The cumulative production till 2027-28 is pegged at 19.56 BCM of gas, 1.97 million cubic meter of condensate and 1.83 MMT of oil. (Separate Press Release also issued)

Other highlights :

  • ONGC is the Top Energy company of India as per Platts 250 Rankings ONGC has been ranked as the Top Energy Company in India, in the coveted Platt’s Top 250 Global Energy Company Rankings 2014. In the Asia Pacific rim, ONGC was featured at 5th position, up from 7th last year. ONGC has also maintained its position as the 3rd ranked Exploration and Production company globally.
  • ONGC improves Transparency ranking to 26th, up 13 notches The latest Transparency International report ‘Transparency in Corporate Reporting: Assessing the World’s Largest Companies’ lists ONGC at 26th position among world’s 124 largest publicly listed companies. ONGC was ranked 39th in the report last published in 2012 (among 105 companies).
  • ONGC ranked 2nd in the BT-500 India’s Most Valuable Companies ONGC has been placed at number 2 position in the Business Today (BT) -500 India's Most Valuable Companies list. ONGC moves two places up over the last year's ranking.
  • ONGC and ONGC Videsh sign Agreements with PVEP, Vietnam ONGC signed a Memorandum of Understanding (MoU) with PetroVietnam Exploration Production Corporation Ltd. (PVEP), a wholly owned subsidiary of PetroVietnam, for mutual cooperation for exploration in the NELP blocks of ONGC in Andaman and Cauvery basins. ONGC Videsh also signed a Heads of Agreement (HoA) with PVEP for mutual cooperation for exploration in Blocks 102/10 and 106/10 of PVEP and Block 128 of ONGC Videsh in offshore Vietnam.
  • ONGC adopts Jantar Mantar under ‘Swachh Bharat Abhiyan’ ONGC has adopted the historic monument, Jantar Mantar, as part of its cleanliness initiative under the Swachh Bharat Abhiyan. This initiative will see cleanliness being maintained by ONGCians in and around the heritage monument.
  • ONGC signs MoU with ASI and Tourism Ministry to conserve Taj Mahal ONGC signed a tripartite MoU with the Archeological Survey of India (ASI) and Ministry of Tourism for conservation of the Taj Mahal. ONGC has allocated Rs. 20.75 Crore for this purpose.

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Oil and Natural Gas Corporation Ltd.
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