OVL Board adopts the Half Yearly results (H1 2010-11) – Onetime extra-ordinary provisionings drags down PAT, despite higher Production and Revenue
The financial results of ONGC Videsh Ltd (OVL), the wholly-owned subsidiary of ONGC, for H1 2010-11 were considered and approved by the OVL Board in its meeting held on 13th November 2010.
The highlights of the Half Yearly results are as below:
|Unit||Financial Year 2009 - 10||Half Year ended||% increase of H1 2010 - 11 vis - a - vis H1 2009 - 10|
|30 September 2009||30 September 2010|
|Total Oil and oil equivalent of Gas||MMTEO||8.870||4.139||4.561||10%|
|Gross Revenue||₹ / Crore||15,383||7,218||8,546||18%|
|Net Profit||₹ / Crore||2,090||1,043||748||-28%|
The strong growth in oil and gas production and revenue in H1 2010-11 comes on the back of highest ever production by OVL in FY 2009-10. There is however a decline in the net profit in H1 2010-11 due to onetime extraordinary provisioning of ` 543 Crore towards possible settlement of a dispute currently under arbitration with regard to the timing of transfer of ownership of interest in the trunk pipeline in Sudan and another onetime extra ordinary provision of ` 201 crore towards income tax on account of exchange gain due to devaluation of local currency by the Venezuelan Government. But for these abnormal items, net profit would have been ` 1492 Crore.
OVL is presently having participation in 40 projects in 15 countries, out of which 9 are producing assets. Odoptu Field in Sakhalin project, Russia, where OVL holds participating interest of 20%, was put on production from 15th September, 2010. The development of the field has been planned for targeted peak production of about 38,000 barrels per day (gross). The field is presently producing in the range of 45,000-50,000 barrels per day, well above the targeted production. The oil discovery in Block 24, Syria, where OVL holds participating interest of 60%, is being put on development.
Speaking on the occasion, Shri R.S. Sharma, Chairman, ONGC Group of companies stated that the Company has built a robust portfolio of assets with sustained operations and continues to move on a high and accelerated growth path.
Oil and Natural Gas Corporation Ltd.
Corporate Communications, New Delhi,