ONGC, India’s biggest energy explorer, announced its Q2 results for the FY17 yesterday. Its net profit came in at Rs 4,975 crore in the quarter ended September 30, increasing from Rs 4,233 crore a quarter earlier. This value is 15 percent higher than the market estimates. Total sales have grown marginally by 3.5 percent to Rs 18,287 crore.
ONGC share price surged as much as 2.52 percent touching 297.40 per share, trading on a new 52 week high, after the board approved an interim dividend and bonus share issue to shareholders.
Earnings before interest, tax and depreciation and amortization (EBITDA) has surged 8 percent as compared to the first quarter to come in at Rs 9,100 crore, while EBITDA margin extended by 207 basis points to 49.5 percent on the back of cost control actions that were initiated in the first quarter.
Some Standard Prices
Brent crude, the approximate figure for half of the world’s crude including India’s, aggregated $45.9 a barrel in the Quarter ended 30 September, 8.5 percent lower than a year earlier, and staying flat on a quarter-on-quarter basis.
ONGC realized a price of $47.92 per barrel of crude, 4 percent over than that the first quarter from self-operated blocks. In joint venture blocks, the price realization was up by 7 percent over the last quarter at $ 41.71 per barrel.
The company did not have to put up with any subsidy burden in the second quarter. Gas price realization stayed stable on a quarter-on-quarter basis, selling gas at $3.06 per million British thermal units (Btu).
ONGC plans to spend Rs 29,000 crore in this financial year to attempt and meet the government’s objective of reducing dependence on crude imports from the current 80 percent to 67 percent by 2022.
ONGC’s total oil output was flat at 6.392 million metric tons (MMT) in the second quarter, just a marginal rise from 6.345 MMT a quarter ago, while gas production increased 6 percent to 5.807 billion cubic meters. ONGC has notified seven new findings in second quarter taking the total figure to 15 in this financial year.
Diwali Bonanza
The board has also declared an interim dividend of Rs 4.5 per share, which converts to 27 percent of its total cash and cash equivalents. A bonus issue of 1:2 ratio, i.e., one bonus share for every two shares owned has also been recommended by the board, subject to shareholders’ approval.
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