State-run ONGC on Saturday reported a 10 per cent y-o-y growth in its net profit at ₹12,061.44 crore for the fourth quarter ended March 2022. On a sequential basis, the oil explorer’s net profit rose by 3.7 per cent.
The company’s consolidated total income rose by 34 per cent y-o-y to ₹1,58,648.42 crore during the January-March quarter in FY22. On a quarter-on-quarter basis, ONGC’s total income rose by 7 per cent from ₹1,45,675.28 crore in Q3 FY22.
The company’s board has recommended a final dividend of ₹3.25 per equity share of ₹5 each for FY22.
Russia operations
“The Group has considered the possible effects that may result from the special operations, carried out by Russia in Ukraine, various sanctions have been imposed on Russia by several countries. These economic sanctions have a cascading effect on the economies globally,” ONGC said in its results filing to the stock exchanges.
The Group has assessed the impact of these sanctions on its operations/assets in Russia. The subsidiary OVL has 3 assets in Russia, namely Sakhalin-1 (joint arrangement, 20 per cent Stake), Vankorneft (associate, 26 per cent stake) and Imperial Energy (wholly-owned subsidiary), it added.
Sakhalin-1 project is operated by ENL, a subsidiary of Exxon Mobil. With the current geopolitical situation, further to the announcement by Exxon Mobil (Operator-ENL) discontinuing operations in the Sakhalin-1 project, the consortium is heading towards a transition of operatorship which is in progress, ONGC informed.
The temporary unavailability of International Group of Protection & Indemnity (IG P&I) insurance for crude oil tankers hired by the project for delivery of its crude oil to international buyers has created a logistic constraint for evacuation of its production from May 22 thereby resulting in reduced output from the project. The situation is likely to improve with the efforts of the consortium to actively resolve the insurance issues, the PSU said.
JSC Vankorneft being an equity-accounted entity is entitled to dividend which was due till March 2022 and has been received. Production from the field continues as per the Business Plan 2022.
Imperial Energy’s operations are continuing as per the Business Plan except for the value of crude oil sales being affected due to prevailing discount. “The Group has considered the above aspect in assessing the impairment of its CGUs in Russia under the consolidated financial statements,” ONGC said.
Published on
May 28, 2022