|ONGC AGM approves aggregate dividend of Rs 33 per share for FY’10|
23 September, 2010
I. Highlights: FY'10
- ONGC retains its position as the highest dividend paying company in India; dividend of Rs 33 per share (330%) with total payout of Rs 7,058 Crore and Rs 1,162 Crore as dividend;
- Highest ever production of oil and gas from overseas assets;
- Highest accretion of Ultimate reserves in last two decades from operated domestic acreages;
- Highest Reserve Replacement Ratio (RRR) in last two decades;
- Highest ever net profit of Rs16,768 Crore; despite sharing under-recoveries of Rs11,554 Crore;
- Twenty one discoveries in FY'10 in domestic fields-14 in onshore and 7 in offshore areas;
- Ten new discoveries in FY’11 till date first shale gas well spudded on 21st September 2010 in Damodar Valley;
- Corporate Sustainability Report duly assured for year 2009-10 released on September 15, 2010;
- Market capitalization of ONGC crossed Rs3 trillion mark first time on September 15, 2010;
- Business Standard in its Delhi edition reported on 18th Sept 2010 that “the maximum rise in m-cap since the markets bottomed in March 2009 has been in ONGC scrip; in absolute terms, the company added close to Rs1.56 lakh Crore”.
II. Dividend payout
ONGC shareholders approved a dividend payment of Rs15 per share (150%) at the 17th Annual General Meeting held today (23rd September 2010) at New Delhi which along with the interim dividend of Rs18 per share (180%) totals to Rs33 per share (330%). In absolute terms this amounts to dividend payout of Rs7,058 Crore and Rs1,162 crore as dividend tax. The total dividend payout is highest-ever and highest by any Indian Corporate.
Dividend payout during the last five years
ONGC Dividend payout ratio has been consistently higher than 40% in the last 6 fiscal years as against Government of India guidelines of 30%. Dividend payout, along with dividend tax, accounts closed to 50%.
III. Highest Reserve accretion
- Total 21 Discoveries (11 new prospect and 10 new pool discoveries) made in FY'10 which include 14 onshore and 7 in offshore areas.
- ONGC's ultimate reserve accretion of 82.98 MTOE from ONGC operated domestic acreages is highest in two decades.
IV. IOR/ EOR schemes
- IOR/ EOR schemes, being implemented by ONGC since 2001, helped in improving recovery factor of the fifteen major fields from 27.5% in 2000-01 to 33.5 in 2009-10; besides arresting production decline in the matured fields.
- As per PFC Energy memo (5th February 2009) aging oil fields which were producing in 2000, in Non-OPEC countries registered a decline rate of 9.4% in 2008. On the contrary, defying global trends, 15 major fields of ONGC with a vintage of 25-30 years registered 1.6% increase in production during the period 2000-01 to 2007-08.
V. Financial Highlights
- Highest-ever Net Profit of Rs16,768 Crore during FY’10 , despite sharing under-recoveries of Rs11,554 Crore./li>
- Due to its sound accounting practices, ONGC received ‘nil’ comments from CAG as well as Statutory Auditors, the fourth time in a row and six times in last seven years.
VI. Production Highlights – Domestic
- During 2009-10 ONGC brought 5 new marginal fields to production. With this, total 50 such fields are now on stream and these fields produced 2.0691 MTOE of oil and gas during 2009-10.
- Hazira plant of ONGC started production of a new product Propane. During FY’10, 1.316 MT of Propane was sold. During FY’10, revenue from export of 1,568 MT of Naphtha has been Rs4,577 crore, the highest-ever both in terms of quantity exported and revenue earned.
VII. ONGC Videsh Limited (OVL)
- OVL has 40 projects spread over 15 countries
- OVL’s consolidated gross revenue during FY’10 was Rs15353 crore, lower by 16.5 %.
- OVL’s consolidated net profit was Rs2090 crore, down by 25.5%.
- OVL-led consortium acquired 40% participating interest in mega Carabobo project in Venezuela
- OVL’s consolidated share in production of oil and oil equivalent gas (O+OEG) was 8.87 MMT.
VIII. Mangalore Refinery & Petrochemicals Ltd. (MRPL) in FY'09
- MRPL registered gross revenue of Rs36081 crore , lower by 15.5 %.
- Profit-after-tax Rs1,112 Crore, lower by 6.8 %.
IX. Consolidated Group Results of ONGC
- Consolidated turnover of ONGC Group of Companies in FY’10 Rs108,579 crore, marginally lower by 1.8 % against last year figure of Rs110,562 Crore due to fall in international petroleum price during FY’10.
- Net Profit of the ONGC Group Rs19,404 Crore (down 2% from Rs19,795 Crore in FY'09) due to fall in crude prices and GRM globally during FY’10.
XI. Future Plans
- Envisaged Growth
- Crude oil production likely to go up 28 MMT by 2012-13 from current production of 24.67 MMT (2009-10).
- Natural gas production likely to be 72 mmscmd by 2012-13 and envisaged to be 100 mmscmd by 2015-16 from present production level of about 62 mmscmd.
- East Coast Hub - Eastern Offshore Asset has been put in place with an aim of putting East Coast discoveries on a fast track basis through an integrated East Coast hub. The oil discoveries in G-4-6, GS-29-1 and G-4-5 discoveries in KG-DWN-98/2 planned to be put on production in 2012-13.
- Exploration Acreage - ONGC has been awarded 17 NELP blocks (including 3 as non-operator and 1 as joint-operator) in NELP-VIII round of bidding for which the contracts were signed on 30th June 2010. ONGC maintains its position as the largest acreage holder in the country.
- Alternate Sources of Energy - ONGC has approved setting up a 102 MW Wind Farm in Rajasthan, in addition to a 51 MW Unit already working successfully in Bhuj, Gujarat. It is also planning to establish a Photo-voltaic Solar Plant. Three Solar Thermal Engines, have been commissioned by ONGC at the Solar Energy Centre (SEC), Ministry of New and Renewable Energy (MNRE) campus at Gurgaon. ONGC Energy Centre which is pursuing a number of alternate energy source projects generates lot of hope in this regard.
- Value-multiplier Projects - Two petrochemical plants being implemented by ONGC promoted SPVs, ONGC Petro-additions Limited (OPaL) at Dahej in Gujarat at the estimated investment of Rs19,500 crore and ONGC Mangalore Petrochemicals Limited (OMPL) at Mangalore at the estimated investment of Rs5,750 crore, are progressing well and are expected to become operational in 2013. Both of these plants are unique in terms of their size and investment.
- These plants have been located in Dahej SEZ and Mangalore SEZ respectively, which are also being co-promoted by ONGC. A gas based Combined Cycle Power Plant (CCPP) of 726.6 MW, being set up by ONGC Tripura Power Company Limited (OTPC), an SPV promoted by ONGC, at Palatana, Tripura, at an estimated investment of Rs3,500 crore, aims to monetize ONGC’s idle gas assets in the state of Tripura. This plant is schedule to be operational in 2011-12.
- Global Rankings: ONGC has been ranked as number 3 E&P Company in the world and 26th among leading global energy majors as per Platts Top 250 Global Energy Rankings 2009 announced in November 2009. It is ranked 24th among the Global publicly-listed energy companies as per ‘PFC Energy 50’ list (Jan 2010). It is also ranked number 1 Top Blue Chip of India in the Finance Asia 100 list for 2009 with the highest aggregate net profit and ranked at 155 in the Forbes Global 2000 list 2010 (April 2010).
- Indian Rankings: ONGC has been ranked as the Best Company to work for in the Core Sector. ONGC scores high at 13th place in overall ranking amongst all the Indian Companies, including public and private (Feb 2010).
- SCOPE Meritorious Awards: ONGC won the Gold Trophy for SCOPE Meritorious Award for Corporate Social Responsibility and Responsiveness for the year 2007-08 and Gold Trophy for R&D, Technology Development & Innovation for the year 2008-09 (awarded in April 2010).
- Dainik Baskar India Pride Awards: ONGC bagged the Gold Award in the Corporate Social Responsibility category in 2010 at the ‘Dainik Bhaskar India Pride Awards for Excellence in PSUs’ instituted by the Dainik Bhaskar group for its CSR project Ashadeep-Shiksha Ki Jyoti on girl child education.
- DSIJ Award: ONGC Clinched two DSIJ-PSU awards 2010, one for excellent overall performance in the category of Heavy Weights and the other for Highest Market capitalization amogst PSU’s in the category of Wealth Builders (April 2010).
- Arjuna Awards: ONGCians Ms Sinimole Poulose and Shri Gautam Gambhir were conferred with Arjuna Award in 2009 in recognition of their achievements in athletics and cricket respectively. Shri Gautam Gambhir was also ranked No. 1 batsman in ICC Test world rankings.
- Badminton: Shri Chetan Anand won the Dutch Open Grand Prix badminton tournament in October, 2009 and also the Gold medal in SAF Games held at Dhaka, Bangladesh in February, 2010. Shri Rupesh Kumar finished Runners up in Australia Open Grand Prix badminton tournament held in July, 2009.
- Cycling: Ms. Koneru Humpy won the 1st place in Fide World Women’s Grand Prix Cycle event at Turkey in March, 2010.
- Chess: Shri K.Sasikaran was the member of the Chess team that won Bronze medal in Owrld Team Championship at Bursa in January, 2010.