ONGC posts highest ever net profit of INR 26,716 crore for FY’19, up by 33.9% YoY

Dated : 30 May 2019 10:30:00 AM

Highlights:

  • Highest ever Gross Revenue of INR 1,09,655 crore in FY’19, up 29% YoY
  • Final dividend of 15% taking total dividend in FY’19 to 140%
  • 13 discoveries in FY’19
  • 5.4% increase in Gas production from ONGC operated fields
  • VAP Production up by 7.6%
  • Highest ever Consolidated Net Profit (PAT) INR 33,887 Crore, up 30% YoY

In its 318th Board Meeting held on 30th May, 2019, ONGC presented the annual results for FY’19.

1. Financial Performance

Particulars Q4FY’19 Q4FY’18 % Var FY’19 FY’18 % Var
Gross Revenue (? Crore) 26,759 23,970 11.6 1,09,655 85,004 29.0
Profit Before Tax (PBT) (? Crore) 5,579 8,240 (32.3) 39,954 28,892 38.3
Profit After Tax (PAT) (? Crore) 4,045 5,915 (31.6) 26,716 19,945 33.9
Crude Oil Price-Nominated
Net Realization (US$/bbl) 61.93 64.27 (3.6) 68.19 55.19 23.6
Net Realization (?/bbl) 4,365 4,133 5.6 4,766 3,557 34.0
Crude Oil Price-JV
Realization (US$/bbl) 61.29 60.03 2.1 65.97 51.47 28.2
Realization (?/bbl) 4,320 3,860 11.9 4,611 3,317 39.0
Gas Price
Price on GCV basis ($/mmbtu) 3.36 2.89 16.3 3.21 2.69 19.3

2. Production Performance

Particulars Q4FY’19 Q4FY’18 % Var FY’19 FY’18 % Var
Crude Oil–ONGC (MMT) 4.790 5.041 (5.0%) 19.626 20.851 (5.9%)
Crude Oil–JVs (MMT) 0.749 0.787 (4.8%) 3.120 3.130 (0.3%)
Condensate (MMT) 0.361 0.374 (3.5%) 1.485 1.454 2.1%
Total Crude Oil (MMT) 5.900 6.201 (4.9%) 24.231 25.435 (4.7%)
Gas – ONGC (BCM) 6.275 5.798 8.2% 24.747 23.484 5.4%
Gas – JVs (BCM) 0.282 0.279 1.1% 1.063 1.126 (5.6%)
Total Gas (BCM) 6.558 6.077 7.9% 25.811 24.610 4.9%
Value Added Products (KT) 931 868 7.3% 3641 3,385 7.6%

3. Dividend Payout

The ONGC Board has recommended final dividend of 15% (INR 0.75 per share). The Company had earlier declared interim dividends of 125% (INR 6.25 per share) during the year; thus the total dividend for FY’19 has been 140% (INR 7.00 per share) as against 132% (INR6.60 per share) in last year. The total dividend payout for FY’19 would be INR 8,806 crore (excluding Dividend Distribution Tax).

4. Exploratory Performance:

ONGC made 13 discoveries in FY’19. Of the 13 discoveries, 8 discoveries were made in onland (Nominaton-6, NELP-2) and 5 in offshore (Nomination-2, NELP- 3). Out of 13 discoveries, 5 discoveries were monetized during the year itself.

a. Reserve Accretion (2P): FY’19

(in MMToe)
ONGC operated domestic areas 63.02
Domestic JVs 11.45
Total Domestic 74.47

b. Reserve Replacement Ratio (RRR) of ONGC-Operated Domestic Areas

In FY’19, ONGC has registered an RRR in excess of ‘One’ for the thirteenth consecutive year. This reflects ONGC’s strong exploratory record over the years.

c. Balance Recoverable Reserves as on 31st March, 2019

(in MMToe)
  Domestic Overseas
(ONGC Videsh)
Total
ONGC - operated Non-operated-JVs
RESERVES
1P 625.52 20.07 345.78 991.37
2P 747.67 22.58 675.72 1445.97
3P 817.52 22.94 706.68 1547.13
CONTINGENT RESOURCES
1C 92.70     92.70
2C 407.26     407.26
3C 579.71     579.71

Note: During the FY’19, ONGC has adopted Petroleum Reserve Management System (PRMS) of estimation of reserves wherein reserves are classified in two categories viz. Reserves and Contingent resources. As on 01.4.2019, the reporting is in PRMS system.

d. The details of the recent two discoveries in FY’19 (notified after the last press release on February 14, 2019) are as under:

1. Suryaraopeta West-1 (SUW-AA) in Malleshwaram PML Block, KG Onland
Exploratory well Suryaraopeta West-1 flowed Oil @ 6.48m3/day and Gas @ 30,132 m3/day. This lead is declared as New Prospect discovery and opened up new area for further exploration and early development.

2. KGD982NA-P1-S-1 in NELP Block KG-DWN-98/2 block (Cluster-II)
Exploratory well KGD982NA-P1-S-1 flowed gas @ 3,81,538 m3/day. This lead established a new pool gas discovery in S-1 Field pay equivalents in this area and will add significant gas reserves to S-1 Vashistha Project.

e. In addition, the following 3 discoveries have been notified in FY’20 so far:

1. Billakuru-1 (BKAA): in Godavari Onland Nomination PML,KG-PG Basin.

Exploratory well Billakuru-1 flowed gas @ 47,193 m3/day from one interval and gas @ 1,17,504 m3/day with condensate @ 30.14 m3/d from another interval. Exploratory success has opened the southern flank of Pudru Yanam high for further exploration.

2. Vanjiyur-3 in L-II Onland PML Block, Cauvery Basin
Exploratory well Vanjiyur-3 gave oil @ 8.64 m3/day and gas @40,500 m3/day. This discovery in zones equivalent to earlier Periyakudi discovery has brought rising flanks around Nagapattinam Graben in exploration focus.

3. YS-6-2(Sub) in Yanam nomination PML block.
Exploratory well YS-6-2(Sub) flowed Gas @ 4,94,986 m3/d. This has been declared as a New Pool Gas Discovery. Exploratory success in the well YS-6-2Sub has established the commercial potential of the Lower Syn-rift play corridor continuing from Deen Dayal field in KG Shallow water.

5. Consolidated Results

1. Highest ever Consolidated Turnover INR 4,53,461 Crore (25% up from INR 3,62,246 Crore in FY’18)
2. Highest ever Consolidated Net Profit (PAT) INR 33,887 Crore as against INR 26,068 crore in FY’18 (30% up)

6. ONGC Group of Companies

1. Oil and Natural Gas Corporation Ltd
2. Subsidiaries:
i ONGC Videsh Ltd
ii Hindustan Petroleum Corporation Ltd
iii Mangalore Refinery and Petrochemicals Ltd
iv ONGC Mangalore Petrochemicals Ltd
v Petronet MHB Ltd
3. Joint Ventures
ii ONGC Petro Additions Ltd
iii ONGC Tripura Power Company Ltd
iv Mangalore SEZ Ltd
V Dahej SEZ Ltd
Vi ONGC TERI Biotech Ltd
Vii Indradhanush Gas Grid
4. Associate:
i Petronet LNG Ltd
ii Pawan Hans Helicopters Ltd

7. ONGC Videsh Ltd

Production
ONGC’s overseas arm, ONGC Videsh Ltd. registered increase in production of oil and gas by 4.7% with net production of 14.833 MMTOE in FY’19, as compared to 14.164 MMTOE in FY’18.

Production Unit FY’19 FY’18
Crude Oil MMT 10.097 9.353
Natural Gas BCM 4.736 4.811
Total Oil and Oil Equivalent Gas MMTOE 14.833 14.164

Turnover
The Company has achieved a turnover of INR 14,632 crore during FY’19 against the turnover of INR 10,418 crore during FY’18 (increased by 40.5%).

Profit After Tax (PAT) and Dividend
The Company registered a PAT of INR 1,682 crore in FY’19, as against a PAT of INR 981 crore in FY’18. The Board of Directors of the Company has recommended final dividend of INR 3.40 per share on fully paid equity share par value of INR 100 each, subject to approval by the shareholders. The dividend amounts to INR 510 crore.

8. Hindustan Petroleum Corporation Ltd (HPCL)

HPCL has registered outstanding physical and financial performance during the FY’19.

Refining throughput and Sales Volume

During FY’19, HPCL refineries at Mumbai and Vizag have maximized crude processing and achieved the highest ever combined refining throughput of 18.44 Million Metric Tonnes (MMT) with capacity utilization of 117%, compared to throughput of 18.28 MMT achieved during FY’18.  During FY’19, HPCL achieved the highest ever sales volume of 38.7 MMT with a domestic sales growth of 4.7% over historical. A total of 478 new retail outlets were commissioned during FY’19 taking the number of total retail outlets to 15,440 as of March 19.

Gross Refinery Margin (GRM)
HPCL achieved combined Gross Refining Margin of US$ 5.01 per barrel during the year as compared to US$ 7.40 per barrel during FY’18. GRMs were lower in comparison to previous year mainly on account of reduced cracks in all products except HSD and FO, higher fuel & loss cost due to increased crude price and exchange rate variation loss due to rupee depreciation.

Turnover, PAT and Dividend
HPCL achieved the profit of INR 6,029 crores on standalone basis during the FY’19, as against profit of INR 6,357 crores during FY’18. Gross Sales during the financial year has increased to INR 2,95,713 crores as against INR 2,43,227 crores during the previous financial year. For the FY’19, HPCL has proposed final dividend of INR 9.40 per share, which combined with the interim dividend INR 6.50 per share totals to a dividend of INR 15.90 per share.

9. Mangalore Refinery and Petrochemicals Ltd (MRPL)

Throughput
MRPL has achieved highest ever throughput of 16.43 MMT for the FY’19 as against 16.31 MMT during last year.

Turnover
MRPL has achieved a turnover of INR 72,315 crore during FY’19 as against INR 63,084 crore during the FY’18 (increase by 14.63%).

Gross Refinery Margin (GRM)
MRPL registered a GRM of US$ 4.06/bbl during FY’19 as against US$ 7.54/bbl during FY’18.

Profit After Tax (PAT) and Dividend
MRPL has posted Profit After Tax (PAT) of INR 332 crore in FY’19 and declared dividend of INR 1.00 per share (10% of paid-up capital) amounting to INR175.26 Crore. 

10. ONGC Mangalore Petrochemicals Limited (OMPL)

OMPL operated at capacity utilization of ~100% in FY’19. Throughput increased by 12.49% from 1353 KT in FY’18 to 1522 KT in FY’19. Total revenue in FY’19 is INR 8,362 crore. Net Profit after Tax is INR 23 Crore for FY’19 and this is the first year when the company has generated positive PAT. Exports increased by 18.21% from 862 KT to 1,019 KT in FY’19.

11. ONGC Tripura Power Company (OTPC)

OTPC, a JV company of ONGC, achieved its highest ever turnover of INR 1,461 Crore and net profit of INR 204 Crore during FY’19. OTPC has declared final dividend of 6% in addition to interim dividend of 8% paid earlier. Total Dividend for FY’19 is INR 157 crore.

12. ONGC Petro additions Limited (OPaL)

ONGC Petro Additions Ltd (OPaL) a JV company of ONGC has started stabilized operation of all its units last year. In the FY’19, OPaL plant has run on an average capacity of around 68% and expected to run at 100% capacity in coming year. OPal has sold more than one MMT of polymers and has grossed INR 9,785 crore as revenues in FY19.

Disclaimer

This Press Release is intended to apprise the public regarding the highlights of Audited Financial Results of ONGC on standalone and consolidated basis, for the year ended 31st March, 2019 approved by the Board of Directors in their meeting held on 30.05.2019, in addition to informing about other major and / or related highlights/ developments which in view of the management may be considered as important. These are not to be taken as forward looking statements and may not be construed as guidance for future investment decisions by investors / stakeholders.