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Analyst Meet / AGM - Analyst Meet

Plans a capex of Rs 36059 crore in FY'15

ONGC

02-Jun-2014, 06:30
ONGC held an analyst meet to discuss results for the quarter end year ended March 2014. Senior management of the company addressed the meet.

Highlights of the meet

ONGC gross crude oil realisation was down 6% to USD 106.65 per barrel in Q4FY'14 and subsidy was up 17% to USD 73.87 per barrel leading to a 35% decrease in net realisation to USD 32.87 per barrel.

Average rupee vs USD fell to Rs 61.78 in Q4FY'14 from Rs 54.16 in Q4FY'13 resulting in 26% fall in net realization of crude oil in rupee terms compared to 35% decrease in dollar terms. Net realization in rupee terms was Rs 2026 per barrel compared to Rs 2755 per barrel in Q4FY'13

ONGC gave a subsidy discount of Rs 16202 crore in Q4FY'14 compared to Rs 12312 crore in Q4FY'13 up by 32%. This impacted the PBT by Rs 13819 crore and PAT by Rs 9122 crore.

EBITDA margin of the company rose 1640 bps to 49.5% in Q4FY'14 compared to Q4FY'13 while PAT margin rose 740 bps to 22.9%.

Crude oil production fell 1% to 25.99 MMT in FY'14 from 26.13 MMT in FY'13. This includes 22.25 MMT from domestic operations and 3.74 MMT from JVs. ONGC gas production fell 2% at 24.85 BCM in FY'14. This includes 23.28 BCM from domestic operations and 1.57 BCM from JVs. Total Value added production fell 4% to 3.02 MMT in FY'14.

For Q4FY'14 crude oil production remained flat at 6.47 MMT. This includes 5.53 MMT from domestic operations and 0.94 MMT from JVs. ONGC gas production fell 1% to 6.17 BCM in Q4FY'14. This includes 5.81 BCM from domestic operations and 0.36 BCM from JVs.

ONGC ultimate reserve accretion in domestic areas was 84.99 MMToe compared to 84.84 MMToe in FY'13

ONGC Reserve Replacement Ratio (RRR) with 3P reserves was 1.87(RRR -1.24 with 2P reserves. RRR with 3P reserves more than one since last nine years

ONGC Videsh records 8.36 MMToe of production in FY'14, an increase of 15% over FY'13

ONGC acquired 5% equity shares of IOC i.e. 121,397,624 equity shares of 10 each at a price of 220/- per share. The consideration amount of 2,670.75 crore was paid to the Government on 14th March, 2014.

Commercial Operation of the first unit (363.3 MW) of ONGC Tripura Power Corporation (OTPC) started on 4th January 2013. The second unit (363.3 MW) is expected to start by Q2FY'15.

ONGC drills India's first Shale Gas exploratory well (JMSGA) at Jambusar, Ankleshwar. The well which was spudded on 27th October, 2013 is the first of its kind after the announcement of Shale Gas Policy by Government of India. During the year, ONGC also carried out assessment studies of Shale Gas in 6 more wells.

ONGC Videsh and Oil India completed the acquisition of 10% Participating Interest (PI) in the Rovuma Area 1 offshore Block, Mozambique by acquiring 100% shares of Videocon Mozambique Rovuma 1, the company holding the 10% PI in the Area 1 for US$ 2,475 million. Subsequently, ONGC Videsh also completed a separate transaction to acquire further 10% participating interest in the Block for US$ 2,640 million. With this, ONGC Videsh's stake in this Block increases to 16%.

ONGC Videsh signed Production Sharing Contracts (PSCs) on 17thFebruary, 2014 for two shallow water offshore exploratory Blocks (SS09 & SS04) awarded in Bangladesh Offshore Bidding Round 2012. ONGC Videsh has 45% PI in each of the blocks with operatorship, 45% PI is held by Oil India and the remaining 10% is held by Bangladesh Petroleum and Exploration Company.

ONGC Videsh was awarded two onshore exploratory blocks in the Myanmar Onshore Bidding Round 2013. Block B-2, having an area of 16,995 sq kms is located in Northern Myanmar, bordering the State of Manipur in India and Block EP-3 having an area of 1,650 sq kms is located in Central Myanmar.

ONGC Videsh has signed a Memorandum of Understanding (MOU) with Rosneft to jointly explore hydrocarbons in the offshore Arctic. The MOU paves the way for the companies' cooperation in subsurface surveys, exploration and appraisal activities and hydrocarbons production in Russia's offshore Arctic.

ONGC Petro-additions (ONGC equity stake is 26%) with a 1.1 MMTPA ethylene cracker capacity & Polymer plant on an investment of Rs 21,396 crore is expected to be complete by Jan'15.

ONGC Mangalore Petrochemicals (ONGC equity stake 46%) with Paraxylene capacity of 0.92 MMTPA & Benzene capacity of 0.27 MMTPA with investment of Rs 5750 crore expected commercial operation Date is by June'14.

ONGC did a capex of Rs 32309 crore in FY'14. For FY'15 it has planned a capex of Rs 36059 crore.