Date:27/06/2006 URL: http://www.thehindubusinessline.com/2006/06/27/stories/2006062704010100.htm

Back Despite hefty subsidy burden, ONGC posts record profit

Our Bureau

Subsidy payout more than doubles

Performing well
Turnover up 4%
Net profit up 11%
To pay 200% final
Subsidy burden rises 191%

New Delhi , June 26

Despite the pressure to shoulder a substantial portion of oil subsidy, Oil and Natural Gas Corporation Ltd on Monday reported a highest ever net profit of Rs 14,431 crore for the fiscal 2005-06, which is 28.54 per cent of the turnover of Rs 50,446 crore compared to a net profit of Rs 12,983 crore on a turnover of Rs 48,442 crore recorded in 2004-05.

The turnover has gone up by 4 per cent while the net profit has jumped 11 per cent resulting in an overall 1.74 per cent increase. The earning per share increased from Rs 91.05 in 2004-05 to Rs 101.20 in 2005-06.

The company declared a final dividend of 200 per cent, which, along with the interim dividend of 250 per cent, takes the total annual dividend to 450 per cent. The total dividend payout would be Rs 6.417 crore. Out of this, Rs 4,758 crore would accrue to the Centre, which holds 74.14 per cent stake in the company.

Speaking to reporters after announcing the results here, the Chairman and Managing Director, Mr R.S. Sharma, said that, "ONGC earned the highest ever net profit this year despite paying out Rs 11,956 crore on fuel subsidies. The subsidy payout in 2005-06 increased by191 per cent from Rs 4,104 crore in the previous year," he added.

The company's overseas arm, ONGC Videsh Ltd, would be able to contribute towards the country's oil requirements from around the end of this year. The OVL MD, Mr R.S. Bhutola, said that India would receive its first crude oil from Russia's Sakhalin-1 fields in the last quarter of this financial year.