In its 339th Board Meeting held on 24th June, 2021, ONGC presented the annual results for FY’21.
- Financial Performance
| Particulars | Q4FY’21 | Q4FY’20 | % Var | FY’21 | FY’20 | % Var |
| Gross Revenue (Rs. Crore) | 21,189 | 21,456 | (1.2) | 68,141 | 96,214 | (29.2) |
| Profit/(loss) Before Tax (PBT)
(Rs. Crore) |
8,928 | (4,008) | 322.8 | 16,403 | 20,388 | (19.5) |
| Profit/(loss) After Tax (PAT)
(Rs. Crore) |
6,734 | (3,214) | 309.5 | 11,246 | 13,464 | (16.5) |
| Crude Oil Price-Nominated | ||||||
| Net Realization (US$/bbl) | 58.05 | 49.01 | 18.4 | 42.78 | 58.61 | (27.0) |
| Net Realization (Rs./bbl) | 4,231 | 3,546 | 19.3 | 3,174 | 4,154 | (23.6) |
| Crude Oil Price-JV | ||||||
| Realization (US$/bbl) | 59.16 | 49.39 | 19.8 | 43.87 | 59.33 | (26.1) |
| Realization (Rs./bbl) | 4,312 | 3,574 | 20.6 | 3,255 | 4,205 | (22.6) |
| Gas Price | ||||||
| Price on GCV basis ($/mmbtu) | 1.79 | 3.23 | (44.6) | 2.09 | 3.46 | (39.6) |
- Dividend pay out
ONGC Board has recommended final dividend of 37% (Rs. 1.85 per share). The Company had earlier declared interim dividend of 35% (Rs. 1.75 per share) during the year; thus the total dividend for FY’21 has been 72% (Rs. 3.60 per share). The total dividend payout for FY’21 would be Rs. 4,529 crore.
- Production Performance
| Particulars | Q4FY’21 | Q4FY’20 | % Var | FY’21 | FY’20 | % Var |
| Crude Oil–ONGC (MMT) | 4.752 | 4.935 | -3.7% | 19.172 | 19.330 | -0.8% |
| Crude Oil–JVs (MMT) | 0.552 | 0.555 | -0.5% | 2.260 | 2.639 | -14.4% |
| Condensate (MMT) | 0.247 | 0.328 | -24.7% | 1.102 | 1.383 | -20.3% |
| Total Crude Oil (MMT) | 5.551 | 5.819 | -4.6% | 22.533 | 23.353 | -3.5% |
| Gas – ONGC (BCM) | 5.385 | 5.862 | -8.1% | 22.096 | 23.853 | -7.4% |
| Gas – JVs (BCM) | 0.199 | 0.178 | 11.8% | 0.720 | 1.042 | -30.9% |
| Total Gas (BCM) | 5.583 | 6.040 | -7.6% | 22.816 | 24.896 | -8.4% |
| Value Added Products (KT) | 764 | 879 | -13.1% | 3120 | 3548 | -12.1% |
Despite country wide lock-down due to COVID-19 pandemic, ONGC has almost reached last year’s production levels in case of Crude oil from its operated blocks. The shortfall in Natural Gas production is primarily due to less offtake by customers due to COVID-19 pandemic. This has resulted in production shortfall of Condensate and Value Added Products (VAP) as well.
- Exploration Performance:
ONGC has declared total 10 discoveries (3 in onland, 7 in offshore) during FY 2020-21 in its operated acreages. Out of these, 6 are prospects (1 in onland, 5 in offshore) and 4 are pools (2 in onland, 2 in offshore). With the monetization of Ashoknagar-1 discovery, the Bengal basin became the eighth sedimentary basin of India from which hydrocarbon has commercially been produced. This has resulted in up-gradation of Bengal basin to Category-I basin as per the new three tier category -classification of sedimentary basins of India.
(a) The details of latest two prospect discoveries notified since the last press release in this regard on 13th February 2021 are as under:
- Exploratory well GK-28-14 was drilled in GK-28 Nomination Block in Kutch Offshore. On testing, flowed Gas @ 80,206 m3/d, Condensate @ 06 BPD
(API- 53.10°) from Late Jurassic, Jhuran formation. The discovery in GK-28-14 will aid in both exploratory stepping out and improving monetization economics.
- Exploratory well WO-5-13 was drilled in BOFF PML (7 Year) block in Mumbai Offshore Basin. On testing, flowed oil and gas from two intervals in Lower Bassein Formation viz. (i) Oil @ 1019 bbl/day and gas @ 1,18,598 m3/day and (ii) Oil @ 806 bbl/day and gas @ 2, 06, 258 m3/day. This lead has established new hydrocarbon find towards south of main Mumbai High Field and opened up area for further exploration.
- Reserve Accretion (Estimated Ultimate Recovery:EUR,2P): FY’21
| (in MMToe) | |
| ONGC operated domestic areas | 50.31 |
| Domestic JVs | 0.86 |
| Total Domestic | 51.17 |
| ONGC Videsh’s Share in Foreign Assets | 9.77 |
| ONGC Group | 60.94 |
- Reserve Replacement Ratio (RRR) of ONGC-Operated Domestic Areas
Reserve Replacement Ratio (2P) from domestic fields (excluding JV share) was 1.19. With this, ONGC has achieved Reserve Replacement Ratio (2P) of more than one for the 15th consecutive year.
- Consolidated Financial Results
| 1. | Consolidated Turnover Rs. 3,60,572 Crore in FY’21 as against Rs. 4,24,961 Crore in FY’20 |
| 2. | Consolidated Group Net Profit (PAT) Rs. 21,343 Crore in FY’21 as against Rs. 11,456 Crore in FY’20 |
- ONGC Group of Companies
| 1. | Oil and Natural Gas Corporation Ltd |
| 2. | Subsidiaries: |
| i | ONGC Videsh Ltd |
| ii | Hindustan Petroleum Corporation Ltd |
| iii | Mangalore Refinery and Petrochemicals Ltd |
| iv | Petronet MHB Ltd |
| 3. | Joint Ventures |
| I | ONGC Petro Additions Ltd |
| ii | ONGC Tripura Power Company Ltd |
| iii | Mangalore SEZ Ltd |
| iv | Dahej SEZ Ltd |
| v | ONGC TERI Biotech Ltd |
| vi | Indradhanush Gas Grid Ltd |
| 4. | Associates: |
| i | Petronet LNG Ltd |
| ii | Pawan Hans Helicopters Ltd |
| iii. | Rohini Heliport Ltd. |
- ONGC Videsh Ltd
Production
ONGC’s overseas arm, ONGC Videsh Ltd. registered decrease in production of oil and gas by 12.96% with net production of 13.039 MMTOE in FY’21, as compared to 14.981 MMTOE in FY’20 as Projects in Russia, UAE and Azerbaijan have been impacted by compliance to agreed upon production cuts by the host governments of OPEC+ group of countries. Geopolitical situation is also impacting production from two projects in Venezuela viz. Sancristobal and Carabobo-1.
| Production | Unit | FY’21 | FY’20 |
| Crude Oil | MMT | 8.510 | 9.755 |
| Natural Gas | BCM | 4.529 | 5.226 |
| Total Oil and Oil Equivalent Gas | MMTOE | 13.039 | 14.981 |
Turnover
The Company has achieved a turnover of Rs. 11,956 crore during FY’21 against the turnover of Rs. 15,498 crore during FY’20 (decrease by 23%).
Profit After Tax (PAT) and Dividend
The Company registered a PAT of Rs. 1,891 crore in FY’21, as against a PAT of Rs. 454 crore in FY’20. The Board of Directors of the Company has recommended final dividend of Rs. 4.00 per share on fully paid equity share par value of Rs. 100 each, subject to approval by the shareholders. The total dividend amounts to Rs. 600 crore.
- Hindustan Petroleum Corporation Ltd (HPCL)
HPCL exhibited resilience and agility to deal with the ever-evolving and transient business landscape.
Refining throughput and Sales Volume
During 2020-21, HPCL refineries at Mumbai and Visakhapatnam achieved combined refining thruput of 16.42 Million Metric Tonnes (MMT) with capacity utilization of 104%. Effective crude sourcing plans, optimizing day to day crude run rate, efficient logistics management and regulating product procurements from other sources enabled HPCL to achieve more than 100% capacity utilization in Refineries inspite of overall demand contraction. During the year, HPCL achieved sales volume of 36.59 MMT compared to previous year’s sales of 39.64 MMT. HPCL continued to be India’s largest lube marketer and second largest LPG marketer during the year. During the year 2020-21, HPCL commissioned 2,158 new retail outlets which is the highest in a year taking the number of total retail outlets to 18,634. HPCL also commissioned 112 new LPG distributorships taking number of total LPG distributors to 6,192 as of 31st March, 2021.
Gross Refinery Margin (GRM)
The combined GRM for HPCL Refineries for FY20-21 works out to US$ 3.86 /bbl compared to US$ 1.02 /bbl in the corresponding previous year.
Turnover, PAT and Dividend
Gross sales for the FY 20-21 was Rs. 2,69,243 crore as compared to Rs. 2,86,250 crore during the previous year. HPCL achieved its highest ever profit of Rs. 10,664 crores on standalone basis during the FY’21, as against profit of Rs. 2,637 crores during FY’20. Enhanced profitability was a result of robust operational performance, improvement in refinery margins helped by inventory gains and favorable exchange rate variations. For the year 2020-21, HPCL has proposed a final dividend of Rs. 22.75 per share.
- Mangalore Refinery and Petrochemicals Ltd (MRPL)
Throughput
MRPL achieved throughput of 11.50 MMT for the FY’21 as against 14.14 MMT during last year due to demand destruction of petroleum products caused by travel restrictions and lockdown due to COVID-19 pandemic.
Turnover
MRPL has achieved revenue from operations of Rs. 51,019 crore during FY’21 as against Rs. 60,752 crore during the FY’20.
Gross Refinery Margin (GRM)
MRPL registered a positive GRM of US$ 3.71/bbl during FY’21 as against negative GRM of US$ (0.23/bbl) during FY’20.
Profit After Tax (PAT)
MRPL has posted loss after tax of Rs. 240 crore in FY’21 as against loss after tax of Rs. 2,740 crore in FY’20. The business of the Company is being impacted by COVID-19 pandemic and resultant lockdown in many countries. The lower demand for crude oil, petroleum and petrochemical products continues to impact the prices and refining margin globally which has resulted in reduction in sales for the Company.
ONGC Mangalore Petrochemicals Limited (OMPL)
Till 31st December 2020 MRPL was holding 51% in OMPL and balance 49% by ONGC. On 1st January 2021, ONGC has sold out its entire equity holding in OMPL to its subsidiary MRPL to get synergic benefit and compound value addition upon merger with MRPL. As on date OMPL is wholly owned subsidiary of MRPL and the process of merger is going on.
- Petronet MHB Limited (PMHBL)
Petronet MHB Limited (PMHBL) is a subsidiary company of ONGC where ONGC and its subsidiary HPCL hold 49.99% shareholding each. PMHBL has earned total revenue of Rs. 111 crore with profit of Rs. 52 crore in FY’21. During the year PMHBL paid interim dividend of Rs. 6 per equity share and ONGC got its share of dividend amounting to Rs. 164.60 crore.
- ONGC Petro additions Limited (OPaL)
ONGC Petro Additions Ltd (OPaL) a JV company of ONGC has stabilized its operations and has established itself in domestic / export market with sale of prime grade products. OPaL operated at average 89.5% capacity in FY’21. OPaL has earned revenue of Rs. 11,486 crore during the year FY’21 as against Rs. 10,183 crore during FY’20. During the year, OPaL introduced PP Fibre & Filament grades “OPaLene RH38” for mask/PPE kits application to meet growing domestic demand during the pandemic period.
- ONGC Tripura Power Company (OTPC)
OTPC’s two power units of 363.3 MW each are fully operational. OTPC has earned revenue from operations of Rs. 1,646 crore and PAT of Rs. 221 crore. OTPC has paid interim dividend at Rs. 0.60 per share and declared final dividend at Rs. 0.70 per share for FY’21, subject to approval of shareholders.
