ONGC FY19 PAT up but Q4 down; and there’s no word on cash reserves

New Delhi: In financial year 2018-19, state-owned Oil and Natural Gas Corporation (ONGC) seems to have balanced the rise in net profit for the entire year with a simultaneous drop of around the same value in the fourth quarter. ONGC’s profit after tax (PAT) went up by 34 percent to settle at Rs 26,716 crores in FY 2018-19, as opposed to Rs 19,945 crores in FY 2017-18. In Q4FY19, the public sector undertaking (PSU) posted a 34 percent drop in PAT at Rs 4,045 crores as opposed to Rs 5,915 crores in Q4FY18. Consequently, the PSU’s shares slipped 0.35 percent to Rs 169.05 in Friday morning trade.

Revenue for FY19 up by 29%

While Q4 saw the revenue rising by 11.6 percent to Rs 26,759 crore as compared to Rs 23,970 crore a year ago, the revenue for the entire financial year 2018-19 stood at Rs 1,09,655 crores, up 29 percent from Rs 85,004 crores in FY18.

ONGC board recommends dividend of Rs 0.75 per share

The ONGC Board has recommended a final dividend of 15 percent (Rs 0.75 per share). The company had earlier declared interim dividends of 125 percent (Rs 6.25 per share) during the year; thus the total dividend for FY’19 has been 140 percent (Rs 7.00 per share) as against 132 percent (Rs 6.60 per share) in last year. The total dividend payout for FY’19 would be Rs 8,806 crore (excluding Dividend Distribution Tax).

Oil production for FY19 drops by 5%

For the entire fiscal year, crude oil output dropped 5 percent to 4.8 million tonne and the price realised by ONGC for every barrel of crude oil sold was 3.6 per cent lower at $61.93. Gas production, on the other hand, went up by 8.2 percent to 6.275 billion cubic metres. Additionally, gas price rose 16.3 percent to $3.36 per million British thermal unit.

No word on cash reserve

The annual report for FY2019 from ONGC was much awaited as the September quarter report from the PSU had shown a massive 98 percent drop in its cash reserves, primarily on account of the HPCL deal, and a rise in borrowings. However, the company has not yet released a detailed annual report for FY2019 and hence nothing is known about the status of cash-in-hand. Entities involved in a high-risk business like oil exploration are required to maintain cash reserves to cover accidents that may take place.