ONGC posts Rs 3,098 crore Q4 net loss: Key takeaways

Mumbai: State-run Oil & Natural Gas Corporation (ONGC) on Tuesday posted a standalone net loss of Rs 3,098.26 crore for the quarter ended March due to an exceptional item towards impairment loss of Rs 4,899 crore.

The oil and gas explorer had posted a net profit of Rs 4,239.50 crore in the corresponding quarter last year.

The company’s revenue from operations declined 19.81 per cent year-on-year (YoY) to Rs 21,456.20 crore during the quarter, compared with Rs 26,758.46 crore in the same quarter a year ago.

Here are the key takeaways from ONGC’s Q4 results:

The company has recommended a final dividend of Rs 2 per share. The dividend amounts to Rs 300 crore.

Exceptional item
ONGC said it has recognized an exceptional item towards impairment loss of Rs 4,899 crore in the March quarter to factor into estimated future crude oil and natural gas prices. This has adversely impacted the net profit for Q4 FY20 and FY20 as compared to last year.

Decline in production
Total crude oil production declined marginally by 1.40 per cent YoY to 5.82 million tonnes in January-March period, as compared to 5.90 million tonnes in the same period last year. On the other hand, gas output declined 7.90 per cent YoY to 6.04 billion cubic meters from 6.56 bcm in January-March 2019 as demand fell due to the Covid-19-induced lockdown.

ONGC declared total 12 discoveries (7 onland, 5 offshore) during FY 2019-20 in its operated nomination acreages. Out of these, 7 are prospects (3 onland, 4 offshore) and 5 are pools (4 onland, 1 offshore). During FY 20-21, ONGC has notified 3 discoveries so far (two in offshore deep-water NELP block and another in on-land block in Nomination PML)

ONGC Videsh
ONGC’s overseas arm, ONGC Videsh registered increase in production of oil and gas by 1 per cent with net production of 14.981 MMTOE in FY20, as compared to 14.833 MMTOE in FY19

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