ONGC declares 25 dividend, net up 32

NEW DELHI, June 29: Enthused by a 32 per cent growth in net profit and a 15 per cent increase in sales turnover, the Oil and Natural Gas Cor...

NEW DELHI, June 29: Enthused by a 32 per cent growth in net profit and a 15 per cent increase in sales turnover, the Oil and Natural Gas Corporation ONGC board on Monday declared 25 per cent dividend for the 1997-98 fiscal. In the previous year the company had paid 20 per cent to its shareholders.The public sector undertaking8217;s PSU net profit jumped to Rs 2,678 crore from Rs 2,037 crore in 1996-97. Its gross profit increased by 30 per cent to Rs 3,312 crore last year, from Rs 2,533 crore the previous year.

The ONGC8217;s interest pay out for the year came down by 17 per cent, but it paid 27 per cent more in taxes and depreciation showed a growth too. The revision of pipeline transportation rates with retrospective effect brought home Rs 819.68 crore of arrears and gave a boost to ONGC8217;s gross profit.

The oil exploration and production E amp; P company8217;s jump in turnover to Rs 15,224 crore from Rs 13,235 crore the previous year, was partly possible because of an increase in gas prices, following thedismantling of the administered pricing system. Natural gas prices were linked to international oil prices in October last year.

Other income gave a boost to the ONGC revenue too and went up by 18.69 per cent last year, to Rs 724.86 crore from Rs 610.70 crore the year before. If ONGC8217;s sales and income went up, so did expenditure. Last year the company spent Rs 800 crore more. It began production at a new gas bearing structure B-121/119 in the Bombay offshore and is currently producing through four wells.

Two new well platforms in the Heera field in Bombay offshore also began production during the year and is now contributing nearly 10,000 barrels of oil per day. It also commissioned the In-situ Combustion EOR projects at three sites, which should enhance the oil recovery of these fields to 35 per cent from 15 per cent now.

During the year, ONGC produced 28.35 million tonne of crude oil, which was 0.5 million tonne more than its target. It supplied 18.62 billion cubic metres BCM of gas compared toan annual target of 17.76 BCM. The production of liquefied petroleum gas LPG also went up marginally, to 1.14 million tonne. The company produced more value added products like C2-C3 and NGL.