The decline in global crude oil prices coupled with gradual diesel rate hikes towards the fuel’s full market-pricing has reflected well in the 2013-14 performance of state-run explorer Oil and Natural Gas corp (ONGC).
“With the buoyancy in international crude prices and greenback strength (our revenue is US Dollar-denominated) expected to continue, there are substantive growth potential in earnings in the near-term,” ONGC chairman D.K. Sarraf said in the company’s annual report for 2013-14.
In 2013-14, ONGC registered its highest-ever revenue at Rs.842.01 billion, a growth of 1.1 percent from Rs.832.90 billion in the previous fiscal.
The company also posted a higher profit after tax of Rs.220.95 billion, up 5.6 percent from fiscal 2013), after sharing the highest ever under-recovery, or losses on selling below cost, of Rs.563.84 billion.
ONGC’s net realized price in 2013-14 was $40.97 per barrel, which was 14.4 percent lower than $47.85 it realized in the financial year 2013.
“This was due to discount of $65.75 per barrel on crude sold to oil marketing companies ($62.89/barrel in FY-13), as per government instructions,” the report said.
it has been reported that the government proposes to rationalise the subsidy-sharing mechanism for state-run oil producers, which is expected to reduce the burden on ONGC and Oil India.
“With more remunerative pricing of our natural gas and with subsidy rationalization, significant value remains to be unlocked for your trusted shareholdings,” Sarraf said in the annual report
The company has proposed a dividend payment of 190 percent with payout ratio of 43.04 percent.
During this fiscal, ONGC’s foreign arm, ONGC Videsh Limited (OVL), acquired assets in Mozambique, Brazil, Bangladesh and Myanmar.
OVL now has a portfolio of 33 hydrocarbon properties worth over $15 billion across the globe in 16 countries.
(IANS)