ONGC declares results for Q3, says net profit down by 64 percent

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New Delhi, Feb.11 (ANI): Public sector undertaking Oil and Natural Gas Corporation Limited (ONGC) declared its Quarter Three results here on Thursday after its 278th board meeting.

Briefing media after the board meeting, ONGC Chairman and Managing Director Dinesh Kumar Sarraf informed that the net profit of the PSU had come down by 64 percent in fiscal 2015-16 as compared to the third quarter results of 2014-15.

Presenting the quarterly results for the quarter ending December 31, 2015, Sarraf said that Quarter Three gross revenue for fiscal 2015-16was pegged at Rs. 18,547 crore as against Rs.18,980 crore for the same period in fiscal 2014-15.

He said net profit for the PSU for Quarter Three in fiscal 2015-16 was pegged at Rs.1,286 crore as against Rs.3,571 crore for the same period in fiscal 2014-15.

The ONGC CMD further informed that four hydrocarbon discoveries have been notified. These were as follows:

1. Oil and gas discovery in the West Penugonda Well#1 (WPG-AA), Godavari Onland PML, KG Basin.

2. Gas discovery in the Kesanapalli West Well # 47 (KW#47), Godavari Onland PML, KG Basin.

3. Gas discovery in the MBSO53NAA#1, NELP Block MB-OSN-2005/3 Well in Mumbai Offshore Basin, Western offshore.

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4. Gas discovery in the GK-28#10 (GK-28-L), GK-28 PML Well, Kutch Offshore, Western Offshore basin.

Sarraf said that with these discoveries, ONGC has notified a total of 14 new discoveries (6 new prospect and 8 new pool) so far in fiscal 2015-16.

He also said that no under-recovery discount was considered in Quarter Three for fiscal 2015-16 as against Rs.9,458 crore in the same period in fiscal 2014-15, fo which a letter was awaited from the government.

The ONGC CMD also presented production performance for nominated blocks of crude oil; joint venture crude oil proposals; condensates; total crude oil; nominat5ed blocks of gas, joint venture gas proposals; total gas and value added products.

Insofar as financial results of the company were concerned i.e. gross revenue, Sarraf said that there was a 1.2 to 2.3 percentage variable between figures disclosed in fiscal 2015-16 and figures disclosed in fiscal 2014-15.

He said that ONGC had assessed the indications of significant impairment as on December 31, 2015 due to fall in crude oil prices in the international market, and accordingly the company has tested its cash generating units for the impairment.

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He said that as a result, an amount of Rs.3,994 crore has been provided as impairment loss and shown as exceptional items for the quarter and nine months ending December 31, 2015, and consequentially, profit before tax and profit after tax for the quarter and nine months ending December 31, 2015, is lower by Rs.3,994 crore and Rs.2,612 crore respectively.

In the current fiscal, he said ONGC Videsh Limited and Russia’s Rosneft had signed an agreement of confirmation of successful completion of the first stage pre-completion actions in relation to the creation of a joint venture in JSC “Vankorneft” on December 24, 2015. The document was signed in continuation of the agreement of sale and purchase of a 15 percent share in Vankorneft and the shareholders agreement in regard of the enterprise management.

He revealed that both ONGC and OIL hade signed a MoU on December 23,2015 for Joint collaboration leading to mutually beneficial research and development projects fulfilling commitment under the head of “JIP- Joint Industries Project” mandated in the sectorial innovation council report of Govt. of India for E and P sector.

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Aryabhata-2, a high-performance computing cluster system at GEOPIC, was also inaugurated on January 26, 2016. Aryabhata-2, among world’s top 500 supercomputers, comprises 250 compute nodes (~6000 cores), 21 front end servers and 23 high end graphic workstations. 650 TB of enterprise class SAN storage, served through 56 Gbps FDR Infiniband interconnect provides the desired resources for much needed number crunching applications. With the adoption of this super computer, advanced processing applications such as Reverse Time Migration (RTM), 3D Surface Related Multiple Attenuation (SRMA), 5D Regularisation, etc. can now be successfully adopted in ONGC.

Sarraf also informed that ONGC’s Hazira Plant had won the prestigious ‘Certificate of Merit’ in National Energy Conservation Award 2015 organised by Ministry of Power for adopting energy conservation measures. The National Energy Conservation Awards are presented to industries and other establishments every year by the Ministry of Power with the objective of promoting energy conservation among all sectors of economy.

ONGC also received Oil and Gas conservation award from the government on January 18, 2016. (ANI)

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