Skip to content
Ongc overtakes Tata Steel to become second most profitable company in India;  Reports the highest net profit in fiscal year 22

Buoyed by the best ever price on the crude oil it produces, state-owned Oil and Natural Gas Corporation (ONGC) reported record net profit of Rs 40,305 crore in the financial year ended March 31, thus becoming the second most profitable in India. company behind Reliance Industries Ltd. In a statement, ONGC said net profit for the fiscal year 22 (April 2021 to March 2022) soared 258% to Rs 40,305.74 crore from Rs 11,246.44 crore during the year. ‘Previous exercice.

This is because it earned an average of $76.62 per barrel of crude oil produced and sold during the fiscal year, compared to $42.78 per barrel of net realization the previous year. This is the highest price ever for ONGC as international oil prices surged from late 2021 and hit a nearly 14-year high of USD 139 per barrel following the invasion of Ukraine by Russia.

Net profit for the March quarter stood at Rs 8,859.5 crore compared to Rs 8,764 crore in the previous quarter. The CNBC-TV18 poll had predicted a net profit of Rs 10,726 crore.

Read also

Fourth quarter revenue was Rs 34,497 crore. It was at Rs 28,473 crore in the third quarter. The CNBC-TV18 poll estimate was Rs 34,635 crore.

International rates had reached a record high of US$147 per barrel in 2008, but ONGC’s net realization at the time was much lower as it had to provide subsidies to fuel retailers so they could sell gasoline, diesel and cooking gas, LPG and kerosene at lower rates. than the cost.

The CGSB now obtains international rates, as downstream fuel retailers also price gasoline, diesel and other petroleum products at world rates. The company earned $2.35 per million British thermal units for the gas it sold, up from $2.09 the previous year in FY21. The price of gas jumped to 6 .1 USD in April of this year and this impact will be visible in the first quarter results.

Consolidated net profit, after including those made by its subsidiaries like HPCL, PL and ONGC Videsh Ltd, climbed to Rs 49,294.06 crore in 2021-22 from Rs 21,360.25 crore in 2020-21. ONGC’s autonomous and consolidated net profit is the second highest profit in the country.

ONGC was once India’s most profitable company, but a decline in production and the payment of fuel subsidies have led to declining profits over the years. ONGC said its own source revenue from its operations soared nearly 62% to Rs 1.10 lakh crore and consolidated revenue was Rs 5.31 lakh crore.

The rise in profits came despite a 3.7% drop in crude oil production to 21.7 million tonnes in 2021-22 as some of the company’s western offshore fields were hit by a severe cyclone in May last year. Gas production fell 5% to 21.68 billion cubic meters. “The decline in oil/gas production is mainly due to the impact of Cyclone Tauktae on Western offshore assets and Western onshore assets and modification works at Hazira (Gujarat),” the report said. communicated.

ONGC said its reserve replacement ratio (2P) of domestic fields (excluding joint venture fields) was 1.01. This is the 16th consecutive year that ONGC has achieved a reserve replacement ratio (2P) greater than one. The company’s overseas arm, ONGC Videsh Ltd, reported a 16% drop in net profit to Rs 1,589 crore in 2021-22 as crude oil and natural gas production fell. Its crude oil production fell to 8.099 million tonnes in FY22 from 8.51 million tonnes the previous year. Gas production fell to 4.231 billion cubic meters from 4.529 billion cubic meters in FY21.

ONGC declared a final dividend of 65% (3.25 rupees per share with a par value of 5 rupees each), bringing the total dividend paid during the year to 210% (10.50 rupees per share).

With PTI entries

(Edited by : Priyanka Deshpande)

First post: STI

cnbctv18-forexlive-benzinga -Sp

Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.