ONGC announces 200% dividend

The state-run Oil and Natural Gas Corporation has reported a 50 per cent year-on-year increase in net profit in 2004-05 to Rs 12,983 crore (Rs 129.83 billion). Turnover was up 44 per cent to Rs 46,712 crore (Rs 467.12 billion) in 2004-05 compared with Rs 32,512 crore (Rs 325.12 billion) in 2003-04.

The corporations have also announced a final dividend of 200 per cent taking the total dividend during 2004-05 to 400 per cent.

At a news conference on Monday, ONGC managing director Subir Raha said the company was looking at equity participation in MRPL and Kakinada refinery from overseas investors in exchange for equivalent value offered by the partner.

"We have a refinery on the west coast (Mangalore) and if government approves the Rajasthan refinery we will have one in north-west. Now, to feed the eastern part, we have proposed a refinery at Kakinada," he said.

The company would be making capital investment of about Rs 12,000 crore (Rs 120 billion) in 2005-06. Of this, Rs 10,000 crore (Rs 100 billion) would be invested in the country, while the remaining would be utilised for acquiring assets abroad.

The company invested about Rs 10,681 crore (Rs 106.81 billion) during 2004-05 with a focus on augmenting and expanding exploration and production facilities and systems.

Raha said proposals for setting up two grassroots refineries of 5 mt each in Rajasthan and Kakinada in Andhra Pradesh. have been submitted to the petroleum ministry. Cairn Energy and ONGC are partners in an oilfield in Barmer region of Rajasthan.

In the case of MRPL, the refinery was working at 12 mt capacity. Expansion through debottlenecking was in progress and through an investment of Rs 3,000 crore (Rs 30 billion) the capacity was likely to touch 15 mt by 2007-08.

The detailed feasibility report on MRPL expansion, which would involve putting up additional units like FCC, coker and Indalin (naphtha to LPG plant), would be available in a month, he said.  He also announced that the company planned to go into shipping and LNG businesses.

The company which made a debut into petroleum retailing recently plans to set up 30 outlets in Karnataka, Gujarat, Andhra Pradesh, Tamil Nadu and Jharkhand during the current year.