ONGC
ONGC reports PAT of Rs 18,749 cr in Q2FY22
Mumbai/IBNS: The state-owned oil and gas exploration and production company ONGC announced a consolidated profit after tax (PAT) of Rs 18,749 crore increasing 234 percent from Rs 5,675 crore in the same period last financial year and 174 percent higher from a PAT of Rs 6,847 crore in the last quarter.
The company's consolidated revenues jumped 46 percent to Rs 1,22,029 crore from Rs 83,619 crore recorded in the year-ago period.
On a sequential basis, consolidated revenues grew by 13 percent from Rs. 1,08,136 crore reported in the previous quarter.
“During the quarter, the company has decided to opt for lower tax regime u/s 115BAA of the Income Tax Act, 1961, with effect from FY 2020-21. Accordingly, the company has recognized provision for tax expenses and re-measured its net deferred tax liabilities,” said the company.
The net impact due to availing of the option has led to a decrease in deferred tax liability by Rs 8,541 crore and a decrease in current tax liability by Rs 1,304 crore.
This tax write-back of Rs 7,195 crore has inflated the bottom line in this quarter.
The company benefitted from the increase in crude realizations and higher prices of value-added products.
Crude and Gas Realizations
The company’s nominated crude realizations grew 68 percent y-o-y from Rs 3,078/bbl to Rs 5,139/bbl (USD 69.36 in Q2FY22 vs USD 41.38 in Q2FY21).
In the same period, the crude oil realizations for its JV jumped 69.5 percent y-o-y from Rs 3,108/bbl to Rs 5,269/bbl (USD 71.11 in Q2FY22 vs USD 41.78 in Q2Fy21).
However, the gas realizations for the company dipped 25 percent y-o-y from USD 2.39/mmbtu to USD 1.79/mmbtu.
Crude and Gas Production
The production of both crude and gas for the company lowered during the period under review owing to COVID-related restrictions in several parts of the country.
The company recorded a three percent y-o-y decline in its crude oil production to 4.68 million metric tonne (MMT) while its JV produced 0.56 MMT, 4.3 percent lower volume, in this quarter. Condensate production also dropped 17 percent y-o-y to 0.24 MMT.
Total gas production during the quarter (ONGC+JVs) was down 7 percent y-o-y from 5.88 billion cubic meters in the previous year (BCM) to 5.47 BCM in this quarter. Production of value added products also declined 4.7 percent from 826 kilo tonne (Kt) last year to 787 Kt in this quarter.
“The production of crude oil and gas has declined during the current year mainly due to restrictive conditions created by cyclone Tauktae and due to Covid impact”, the company said.
Operating Margins
The increase in Brent Crude prices improved the operating margins of the company from 32.8 percent last year to 48.2 percent in this quarter.
Dividend
ONGC has approved an interim dividend of 110 percent, amounting to Rs 5.50 on each equity share of Rs 5. The total payout on this account will be Rs 6,919 Crore.
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