Subsidiary companies bring cheer to ONGC

Upstream oil giant ONGC is flying high on the back of better performances of its subsidiary companies - ONGC Videsh and Mangalore Refinery and Petrochemicals Ltd (MRPL). Chairman Dinesh K. Sarraf announced the financial results of both the companies on Tuesday.

ONGC Videsh (OVL), the foreign arm of upstream public sector oil giant ONGC, has recorded its highest- ever profit of Rs 4,445 crore - an increase of 13.1 per cent from the previous year.

Crude oil production during the financial year 2014 (FY14) was higher by 26.3 per cent due to new production stream from ACG, Azerbaijan, acquisition of additional 12 per cent PI in Block BC-10, Brazil, and higher production from Sudan and resumption of production from South Sudan. Gross Revenue during FY14 has increased mainly due to increase in production and positive exchange rate.

Sarraf said the ONGC Videsh team had done an excellent job in achieving the higher physical and financial performance and successful acquisitions of discovered oil and gas projects.

ONGC Videsh has participated in 33 projects in 16 countries, including Azerbaijan, Bangladesh, Brazil, Colombia, Iraq, Kazakhstan, Libya, Mozambique, Myanmar, Russia, South Sudan, Sudan, Syria, Venezuela and Vietnam.

MRPL, a unit of stateowned Oil and Natural Gas Corp (ONGC), reported a net profit of Rs 1,067 crore in the fourth quarter on the back of foreign exchange and inventory gains.

MRPL had posted a net loss of Rs 62 crore in January- March 2013.

Sarraf said the company has done well on the back of Rs 575 crore gain from rupee appreciating against the US dollar and an inventory gain of Rs 503 crore.

MRPL earned $ 3.18 on turning every barrel of crude oil into fuel as compared to a gross refining margin of $ 1.98 a barrel.

Sarraf further said, " Going forward, GRMs (gross refining margins) are going to be higher because completion of the phase- III expansion plan which will enable the refinery to distil heavy crudes which are cheaper.'' Turnover rose by about three per cent to Rs 20,032 crore, he said, adding the refinery processed 3.84 million tonnes in January- March, down from 4.12 million tonnes a year ago. For full fiscal 2013- 14, the company earned a net profit of Rs 601 crore as opposed to a loss of Rs 179 crore.

Turnover was up 9.3 per cent at Rs 75,226 crore as export revenue rose 6.15 per cent to Rs 35,392 crore.

Courtesy: Mail Today