ONGC becomes India’s second most profitable company after Reliance Industries Ltd.
ONGC becomes India’s second most profitable company after Reliance Industries Ltd.
State-owned Oil and Natural Gas Corporation (ONGC) posted a record net profit of ₹40,305 crore in the financial year ended March 31, India’s second highest, on the back of the best ever price on crude oil produced by it. became more profitable. The Company Behind Reliance Industries Limited
In a statement, ONGC said that the net profit for the fiscal year 2012 (April 2021 to March 2022) grew by 258% to ₹40,305.74 crore, from ₹11,246.44 crore in the previous financial year.
It fetched an average of $76.62 for every barrel of crude oil produced and sold in the fiscal year as against a net realization of $42.78 per barrel in the previous year.
This is the best price ever for ONGC as international oil prices rose since late 2021 and hit a 14-year high of $139 a barrel after Russia’s invasion of Ukraine. International rates had risen to $147 a barrel in 2008, but ONGC’s net realization at that time was very low as it had to provide subsidies to fuel retailers to sell petrol, diesel, LPG and kerosene at below-cost rates. Can you ,
ONGC now gets international rates as downstream fuel retailers also price petrol, diesel and other petroleum products at global rates.
The firm received $2.35 per million British thermal units for the gas sold, compared to $2.09 in the previous fiscal year 2011. The gas price rose to $6.1 in April this year, and the impact will be reflected in first-quarter earnings.
After including income earned by subsidiaries such as HPCL, MRPL and ONGC Videsh Ltd, the consolidated net profit increased to Rs 49,294.06 crore in 2021-22 as against Rs 21,360.25 crore in 2020-21.
ONGC’s both standalone and consolidated net profit is the second highest in the country.
Reliance had reported a consolidated net profit of ₹67,845 crore on May 6 on revenue of ₹792,756 crore.
ONGC overtook Tata Steel and placed second. Tata Steel on May 3 reported a standalone net profit of ₹33,011.18 crore and a consolidated net profit of ₹41,749.32 crore for FY22.
The No. 4 spot is Tata Consultancy Services Limited (TCS) with a consolidated net profit of ₹38,449 crore, followed by State Bank of India (SBI), which reported a net profit of ₹31,676 crore as on May 13. It has a rival in the private sector. HDFC Bank reported a standalone net profit of ₹36,961.33 crore and a consolidated net profit of ₹31,150.90 crore for the financial year.
ONGC was once India’s most profitable company, but declining production and paying fuel subsidies caused its earnings to decline over the years.
ONGC said its standalone revenue from operations grew nearly 62% to ₹1.10 lakh crore and consolidated business stood at ₹5.31 lakh crore.
The gains came despite a 3.7% fall in crude oil production to 21.7 million tonnes in 2021-22 as some of the firm’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 reduction in oil/gas production is mainly due to the impact of Cyclone Tawta in western offshore properties and western coastal properties and rectification work at Hazira (Gujarat),” the statement said.
ONGC said its reserve replacement ratio (2P) from domestic sectors (excluding joint venture sectors) was 1.01. This is the 16th consecutive year that ONGC has achieved more than one Reserve Replacement Ratio (2P).
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 declined to 8.099 million tonnes in FY12 from 8.51 million tonnes in the previous year. Gas production fell from 4.529 BCM to 4.231 billion cubic meters in FY2011.
ONGC declared a final dividend of 65% (₹3.25 per share face value ₹5 each), taking the total dividend paid in the financial year to 210% (₹10.50 per share).