ONGC declares interim dividend of Rs 4,277 crore

The board of state-run petroleum explorer Oil and Natural Gas Corporation (ONGC) has approved an interim dividend payment of Rs 4,277 crore for the current financial year. The board approved 100 per cent dividend, paying Rs 5 per equity share of Rs 5 each, to shareholders.

“The total payout on this account will be Rs 4,277.7 crore out of which the government of India will receive Rs 2,948 crore on its shareholding,” the company said in a statement. The firm would also pay a dividend distribution tax of Rs 855.5 crore in addition. The payment of the interim dividend for shareholders will start from 18 December.

Last fiscal, ONGC had declared an interim dividend of hundred per cent or Rs 5 per equity share of Rs 5 each on 8.555 billion shares that was paid in December 2013. The board had approved a second interim dividend of Rs 4.25 per equity share or 85 per cent on the equity share of Rs 5 each for 2013-14. Thus, the total interim dividend added up to Rs 9.25 per share of Rs 5 each or Rs 7913.83 crore.

The massive dividend payout comes at a time the government is hard pressed for money.

The company also said it has notified the board of three discoveries including a gas discovery in its nomination deep water block, KG-OS-DW-III, in KG-basin off the east coast; an oil and gas discovery in the Mumbai offshore basin and Thirunagari gas discovery in the Cauvery basin.