ONGC drops after poor Q4 outcome

ONGC fell 2.35% at Rs 320.40 at 09:21 IST on BSE after net profit fell 19.5% to Rs 3935.07 crore on 3.1% increase in total income to Rs 23381.07 crore in Q4 March 2015 over Q4 March 2014.

The result was announced after trading hours yesterday, 28 May 2015.

Meanwhile, the S&P BSE Sensex was up 21.21 points or 0.08% at 27,527.92

On BSE, so far 86,464 shares were traded in the counter as against average daily volume of 4.59 lakh shares in the past one quarter.

The stock hit a high of Rs 321.65 and a low of Rs 313.30 so far during the day. The stock had hit a record high of Rs 472 on 9 June 2014. The stock had hit a 52-week low of Rs 301 on 27 March 2015.

India's largest oil & gas exploration firm by sales has equity capital of Rs 4277.74 crore. Face value per share is Rs 5.

ONGC's net profit fell 19.7% to Rs 17732.95 crore on 2.6% decline in total income to Rs 88238.18 crore in the year ended March 2015 over the year ended March 2014.

On a consolidated basis, ONGC's net profit fell 30.8% to Rs 18333.52 crore on 8% decline in total income to Rs 166883.66 crore in the year ended March 2015 over the year ended March 2014.

As per the decision of the Government of India no discount has been extended by ONGC to public sector oil marketing companies (PSU OMCs) during Q4 March 2015. During the corresponding previous year period i.e. in Q4 March 2014, ONGC gave a subsidy discount of a whopping Rs 16202 crore to PSU OMCs on sale of crude oil, PSD kerosene and domestic LPG.

There was an increase in oil and gas production by 6.19% (oil 0.86% and gas 16.37%) in the year ended March 2015 compared with the year ended March 2014. The incremental production was primarily due to better management and addition in the portfolio.

ONGC said that continuous decline in production of crude oil over last seven years has been reversed. Offshore oil production rose 4.3% to 16.18 MMT in the year ended March 2015 compared with the year ended March 2014. Total ONGC crude oil production has gone up from to 22.26 MMT in the year ended March 2015 from 22.25 MMT in the year ended March 2014.

ONGC's board in its meeting yesterday, 28 May 2015 approved investment of Rs 1881.22 crore for Redevelopment of Gamij field under Stage Gate Process at Ahmedabad Asset. Gamij field is the first onshore field being developed under Stage Gate Process. The project cost includes drilling of 280 wells and creation of surface facilities like Group Gathering Stations, ONGC said.

ONGC is India's largest oil and gas exploration firm by sales. The Government of India holds 68.94% stake in ONGC (as per the shareholding pattern as on 31 March 2015).

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