Page 46 - Plastics News August 2018

BUSINESS NEWS

ONGC registers net profit Rs Gurit Divests PVC Production
6,144 crores Site in China

tate-owned Oil and Natural Gas Corp (ONGC) reported urit has reached an agreement with Qingdao
S SHU FHQW MXPS IRU WKH -XQH TXDUWHU QHW SURÀW RQ GZhengyu Sunshine Industrial Co., Ltd. on the
UHDOLVLQJ KLJKHU SULFHV IRU LWV SURGXFH ,WV QHW SURÀW RI 5V divestment of all shares in Gurit`s PVC production
FURUH RU 5V SHU VKDUH LQ WKH ÀUVW TXDUWHU company in Qingdao, China for an undisclosed sales
RI ÀVFDO ZDV KLJKHU WKDQ 5V FURUH RU 5V price. Closing of the transaction is expected for
3.03 a share, in the year-ago period. The company said in October 2018, subject to regulatory approvals, and is
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rose to Rs 27,212.83 crore from Rs 19,073.54 crore in year. Qingdao Zhengyu Sunshine Industrial Co., Ltd.
$SULO -XQH SHULRG RI ODVW ÀVFDO 7KH QHW SURÀW LV KLJKHVW ZDV HVWDEOLVKHG RQ $XJXVW LQ WKH :HVW &RDVW
since December 2013 when earnings had hit Rs 7,126 New District of Qingdao, Shandong Province, China.
crore. ONGC realised The agreement to sell the Gurit production facility
USD 71.48 for every in Qingdao, China follows the decision to focus core
barrel of crude oil PDWHULDOV PDQXIDFWXULQJ IRU WKH $VLD 3DFLÀF UHJLRQ RQ
it produced in the SAN, PET and balsa wood at Gurit`s existing production
April-June quarter facility in Tianjin, China.The transaction comprises
RI WKH FXUUHQW ÀVFDO Gurit`s Qingdao operations, including its staff, PVC
up 47.6 per cent over operating assets and product IP. Gurit will provide
USD 48.42 a barrel in support to Qingdao Zhengyu Sunshine Industrial Co., Ltd
the year-ago period. during the transition phase in order to ensure a seamless
For natural gas, it got USD 3.06 per million British thermal handover and business continuity. The new owner has
unit as compared to USD 2.48 per mmBtu. ONGC said its H[SUHVVHG D VWURQJ GHVLUH WR FRQWLQXH WR VXSSO\ *XULW V
crude oil production dropped 5.3 per cent to 5 million existing customers, and to grow the business further. The
tonnes in the quarter. This was partly made up by a 2.5 FRPSDQLHV RI *XULW +ROGLQJ $* :DWWZLO 6ZLW]HUODQG
SHU FHQW ULVH LQ RXWSXW IURP MRLQW YHQWXUH ÀHOGV WKDW (SIX Swiss Exchange: GUR) are specialized on the
pumped 0.8 million tonnes oil. Natural gas production
was however 3.4 per cent higher at 5.9 billion cubic
metres.Its revenue from operations rose 42.7 per cent
to Rs 27,212.83 crore for the quarter under review. The
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Rs 2,695 crore service tax and GST under protest as it
believes such taxes are not applicable on royalty paid by
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required to pay 12.5 per cent royalty on crude oil to the
state governments for on-land areas and at 10 per cent to development and manufacture of advanced composite
the central government for shallow water areas. The tax PDWHULDOV UHODWHG WHFKQRORJLHV DQG VHOHFW ÀQLVKHG SDUWV
department is seeking payment of service tax on these and components. The comprehensive product range
royalty payments. "In the year 2017-18, the company had FRPSULVHV ÀEUH UHLQIRUFHG SUHSUHJV VWUXFWXUDO FRUH
received show-cause notices at various work centres on products, gel coats, adhesives, resins and consumables.
account of service tax along with interest and penalty, Gurit supplies global growth markets with composite
on royalty on crude oil and natural gas levied under Oil materials on the one hand and composite tooling
Field (Regulation & Development) Act, 1948," ONGC said. HTXLSPHQW VWUXFWXUDO HQJLQHHULQJ DQG VHOHFW ÀQLVKHG
ONGC said it had worked out service tax for the period parts on the other. The global Group has production sites
from April 1, 2016 to June 30, 2017 along with interest of DQG RIÀFHV LQ 6ZLW]HUODQG *HUPDQ\ +XQJDU\ ,WDO\
Rs 2,294 crore. Further, GST along with interest thereon Spain, the U.K., Poland, Canada, the U.S.A., Ecuador,
has been worked out of Rs 1,608 crore. New Zealand, India and China.

Plastics News August 2018 46