Page 36 - Plastics News July 2020

Oil India reports Rs 925.64 crore net profit in Q4 ONGC Q4 reports loss of Rs 3,098.3 crore

il India Limited (OIL) has reported Rs 925.64 crore NGC reported a loss of Rs 3,098.3 crore on a
Onet profit for the fourth quarter of financial year Ostandalone basis for the quarter ended March 31,
2019-2020. The company had reported a loss of Rs against a profit of Rs 4,239.5 crore recorded in the
208.54 crore for the same period of the previous same period a year ago. The state-run oil and gas-
financial year. "The higher profit was on account of OIL producing company attributed the loss to the
impairment loss of Rs 4,899 crore recognised in the
adopting the new concessional tax regime introduced
by Section 115BAA of Income Tax Act, 1961 for the
financial year 2019-2020. The effective tax rate under
the new regime would be 25.17 per cent. This has

quarter to factor in the estimated future crude oil and
natural gas prices. The company produced 5.8 million
tonne of crude oil in the quarter from its ageing
resulted in reversal of deferred tax liability of Rs oilfields, recording an annual drop of 1.4%. Its natural
gas output fell 7.9% year-on-year to 6 billion cubic
821.01 crore during 2019-2020," the company said in a
metres. ONGC's realisation from crude oil from its
statement. Total income for the quarter stood at Rs
nominated fields fell 20.9% to $49 per barrel during the
3,583.72 crore, up from Rs 3,506.11 crore in the
March quarter, compared with the year-ago period.
corresponding quarter of last fiscal. The company
Revenue from operations was down 19.8% to Rs
Board has recommended a final dividend of 16 per cent
21,456.2 crore in the quarter. According to reports the
or Rs 1.60 per share for fiscal 2019-2020. For the full
company is grappling with under-recoveries stemming
financial year 2019-2020, net profit stood at Rs
from low crude prices. Analysts have pointed out that
2,584.06 crore, down from Rs 2,590.14 crore shown in
lower oil & gas prices and disruption in demand for
the previous financial year 2018-2019. Total income for
refined products can weaken the company's cash flow
fiscal 2019-2020 was reported at Rs 13,648.71 crore, and leverage till FY22-end. The company, which
down from Rs15,170 crore during fiscal 2018-2019. produces about 65% of domestic crude oil, is also
“Crude oil price realisation during the fourth quarter of facing under-recoveries from its gas business, after
2019-2020 got adversely affected due to fall in the government slashed the price of domestic gas by
international crude oil prices because of COVID-19 and 26% to $2.39 per million British thermal units
collapse in understanding between OPEC and Russia on (mmBtu), whereas the firm's average output cost is
continued production cuts," the statement said. Crude around $3.7/mmBtu. ONGC is understood to have
oil price realisation for the quarter stood at $52.18 a requested the government to consider exempting it
barrel, down from $61.76 a barrel in the corresponding from payment of cess, royalties and profit petroleum
quarter of the previous fiscal. until crude prices are less than $45/barrel.

July 2020 36 Plastics News