ONGC to issue bonus shares, Q2 net profit up 6% at Rs 4,975 crore

ONGC on Thursday reported 6.3% increase in net profit at Rs 4,975 crore in the second quarter of the current financial year as against Rs 4,681 crore in the same quarter last fiscal.

Lower crude oil and natural gas price saw ONGC gross revenue fall 10.3% to Rs 18,395 crore against Rs 20,512 crore in Q2 FY16.

“The increase in profit was mainly driven by three factors. First our exploration write off was lower at Rs 547 crore during the current quarter under review, compared to Rs 1,728 crore during the same period last year. In addition to this, we saved a lot on operating expenditure and decline in prices of oil field services,” said Sarraf.

During the fiscal year, ONGC had 15 oil and gas discoveries so far. The gas production for the period increased from 5.702 bcm in second quarter of FY16 to 5.807 bcm during the same period this fiscal.

Production of value added products also increased from 696 KT in Q2 last year to 798KT during the same period this year.

On the other hand the quarter saw a 2.8% drop in the production of crude oil to 6.392 million metric tonne from 6.578 MMT during the same period last fiscal.

During the fiscal year, ONGC had 15 oil and gas discoveries. The gas production for the period increased from 5.702 bcm in second quarter of FY 16 to 5.807 bcm during the same period this fiscal.

Production of value added products also increased from 696 KT in Q2 last year to 798KT during the same period this year.

On the other hand the quarter saw a 2.8% drop in the production of crude oil to 6.392 million metric tonne from 6.578 MMT during the same period last fiscal.

ONGC to issue bonus shares India’s largest explorer ONGC on Thursday decided to issue bonus share in the ratio of 1:2. This mean one bonus share for every two existing shares held. At the same time, ONGC had split its share of the face value of Rs 10 into two of each with face value of Rs 5.

ONGC has also approved an interim dividend of 90%, which turns out to be Rs 4.50 on each equity share of Rs 5. The total payout on this would be Rs 3,850 crore. The biggest beneficiary would be government, which holds 68.93% in the PSU with chunk of Rs 2,654 crore going into its kitty. Also, ONGC would pay a dividend distribution tax of Rs 784 crore.

Dinesh Kumar Sarraf, chairman and managing director of ONGC, said that it has put in place a new dividend policy where the first interim dividend would be decided in the second quarter; second interim dividend in the third quarter and final dividend in the fourth quarter.