corporate presentation feb2011
TRANSCRIPT
Corporate PresentationCorporate Presentation
2
Disclaimer
This Presentation is for information purposes only and does not constitute an offer, solicitation or advertisement with respect to the purchase or sale of any
security of Oil and Natural Gas Corporation Limited (the "Company") and no part of it shall form the basis of, or be relied upon in connection with, any contract
or commitment whatsoever.
This Presentation is being furnished to you solely for your information and may not be reproduced, redistributed or published, directly or indirectly, in whole or
in part, to any other person.
This document contains certain forward-looking statements relating to the business, financial performance, strategy and results of the Company and/or the
industry in which it operates. Forward-looking statements are statements concerning future circumstances and results, and any other statements that are not
historical facts, sometimes identified by the words "believes", "expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates",
"targets", and similar expressions. The forward-looking statements, including those cited from third party sources, contained in this Presentation are based on
numerous assumptions and are uncertain and subject to risks. A multitude of factors including, but not limited to, changes in demand, competition and
technology, can cause actual events, performance or results to differ significantly from any anticipated development. Neither the Company nor its affiliates or
advisors or representatives nor any of its or their parent or subsidiary undertakings or any such person's officers or employees guarantees that the
assumptions underlying such forward-looking statements are free from errors nor does either accept any responsibility for the future accuracy of the forward-
looking statements contained in this Presentation or the actual occurrence of the forecasted developments. Forward-looking statements speak only as of the
date of this presentation. As a result, the Company expressly disclaims any obligation or undertaking to release any update or revisions to any forward-looking
statements in this presentation as a result of any change in expectations or any change in events, conditions, assumptions or circumstances on which these
forward-looking statements are based.
No representation or warranty (express or implied) is made as to, and no reliance should be placed on, the accuracy, completeness or correctness of any
information, including any projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or
misstatements contained herein and, accordingly, none of the Company or its affiliates, its advisors or representatives or any of its or their parent or subsidiary
undertakings or any such person's officers or employees accepts any liability (in negligence or otherwise) whatsoever arising directly or indirectly from the use
of this Presentation.
By attending this Presentation you acknowledge that will be solely responsible for your own assessment of the market and the market position of the
Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the
Company's business.
This Presentation speaks as of its date. Neither the delivery of this Presentation nor any further discussions of the Company with any of the recipients shall,
under any circumstances, create any implication that there has been no change in the affairs of the Company since such date.
This presentation may not be used, reproduced, copied, distributed, shared, or disseminated in any other manner. This presentation does not constitute an
offer or invitation to purchase or subscribe for any shares in the Company and neither any part of it shall form the basis of or be relied upon in connection with
any contract or commitment whatsoever.
3
ONGC Group: An Introduction
Significant role in defining India’s hydrocarbon landscape
Largest domestic exploration acreage and mining lease owned (PEL:51%, ML: 67% and
reserves 58%)(1) as on March 31, 2010
Significant overseas investments with 34 projects in 15 countries(2)
India’s Flag Bearer
for Energy Security
With Global Footprint
One of India’s most profitable enterprise (3)
Most valuable Indian public sector enterprise by Market Capitalisation (4)
MCap of INR 2,517 bn(4), Revenues: INR 1,086 bn, EBITDA: INR 475 bn; Profit:INR 194 bn in FY10
Produced 60.9 mtoe of oil / oil equivalent gas, refining capacity of 12.5mtpa and extracted
3.4mtpa of LPG, Naptha etc from gas / condensate in fiscal year 2010
Global Size & Scale
Presence across the hydrocarbon value chain and strength in Exploration & Production
In-house capabilities in all facets of upstream oil and gas business
Presence across E&P, Refining, Petrochemicals, Power, LNG, & diversification into new
energy sources
Integrated Oil & Gas
Company
Credit rating of A2 (Stable) from Moody’s and LAAA from ICRA
# 1 E&P company in the world(5) ; # 18 energy company in the world(5)
# 155 in the Forbes Global 2000 list and a Fortune 500 Company
Globally Acclaimed
1. Source: MoPNG; PEL – Petroleum Exploration License, ML – Mining Lease; Reserves only for ONGC operated fields
2. Other than the 34 projects mentioned above there are 6 projects/blocks which are currently being relinquished by the ONGC Group
3. Based on Net Profit For Financial Year Ending March 31, 2010.
4. As on Feb 1, 2011, Bloomberg
5. Platts
(71.6%)
(100%)(49%)
Overseas E&POverseas E&P
ServicesServices
(100%)
RefineryRefinery Value-chainValue-chain PowerPower
(50%)
(12.5%)
(23%)
(21.5%)
(26%)
(49*%)(23%)
(26%)
ONGC Amazon Alaknanda Ltd
SEZSEZ
* OMPL: 46% ONGC & 3% MRPL
Primary SubsidiariesPrimary SubsidiariesJoint VenturesJoint Ventures
(100%)
(100%) (50%)
E&P, the corebusiness
ONGC Group: Presence Across The “ EnergySpectrum”
Indian E&PIndian E&P
4
Jarpeno Ltd
Carabobo One AB
(100%)
(100%)
5
ONGC Group: A Rich Heritage
2010
ONGC Group is evolving into an integrated Oil & Gas Company with a Global Footprint
1956: Inception of Oil &
Natural Gas Commission
1974: 1st offshore discovery -
Bombay High
1999: Stake sale by GOI to
IOC (10%), GAIL (2.5%)
1993/94: Divestment of 2%equity by GoI; 2% offered to
employees
2010: CBM, Carabobo (Venezuela)
2010: Maharatna Status
2006: OPAL, OMPL, MSEZ & OTPC
2004: FPO (10% GOI Divestment)
2003: Production in Sudan &
Vietnam begins
2003: Acquired MRPL
2008: Acquired Imperial Energy
Group CAGR (FY02–FY10) (1)
Turnover: 20.8%
Net Profit: 15.3%
1965: Established OVL
(1) CAGR figures for ONGC Group
1997: Navratna Status
1950
2000
2011: Shale Gas
6
Key Highlights
Significant International Footprintwith Demonstrated Track Record
India’s National Oil Champion
World Class Operations and LargeReserve Base
Integrating Across E&P andEnergy Value Chain coupled with
New Growth Diversification
5
4
3
1
Experienced Management Team;With Successful Track Record &
Robust Financials
“Poised for theFuture”
26
ONGC is Well Positioned to Deliver Long Term Growth
Industry Fundamentals Remain Intact
IPE Brent Close (US$)
-
20
40
60
80
100
120
140
2006 2007 2008 2009 2010 2011
Bre
nt
(US
$/b
bl)
IPE Brent Close (US$)
5yr avg 76.2/bbl
7
Macroeconomic Environment Overview
World Economy is on the Path to Recovery…
(6)
(4)
(2)
0
2
4
6
8
10
2001 2003 2005 2007 2009 2011 2012
.. Supported Primarily by Emerging Growth Engines
... Resulting in Global Energy Consumption Growth Crude Price Trends
Source: IMF- Overview of the World Economic Outlook Projections, Jan 25, 2011 Source: IMF- Overview of the World Economic Outlook Projections, Jan 25, 2011
Source: Current price as on Jan 31, 2011 as per BloombergSource: BP Statistical Review of World Energy June 2010
%
Emerging
World
Developed
(btoe)
6.5%
4.5%
2.5%
Current: $99/bbl
9.7%
8.4% 8.4%
10.3%
9.6% 9.5%
CY2010E CY2011E CY2012E
525970727778878789132
390
647
US
Russia
Iran
Canada
Japan
UK
Germ
any
Saudi
Ara
bia
Italy
Mexic
o
UA
E
India
8
Robust Domestic Fundamentals
India’s Oil and Gas Consumption is Amongst the Highest in the World
India is the 4th largest Oil consumer in the World
Gas Consumption in 2009 (bcm)Oil Consumption in 2009 (mmt)
Sources : BP Statistical Review of World Energy June 2010 Sources : BP Statistical Review of World Energy June 2010
97104104114122125149198
405
843
US
Chin
a
Japan
India
Russia
Saudi
Ara
bia
Germ
any
South
Kore
a
Bra
zil
Canada
Comparatively Low Per Capital Consumption Implying Significant Long Term Consumption Growth
(mtoe)
Sources : World Energy Outlook 2009 Sources : World Energy Outlook 2009
Consum
ption
(MT
OE
)
9
Untapped Opportunities in India
~1.79 mn sq. km. of sedimentary basins in India
– Only 22% of basins well explored
~1.35 mn sq. km. of deep waters sedimentary area
Explored,
22%
Unexplored,
12%
Exploration
Initiated,
44%
Poorly
Explored,
22%
Domestic Resources Remain Significantly Under-explored (3)
Despite Increasing Production, India Remains a Net Importer of Crude (1)
Significant increase in Net Crude Imports over the last 10 years (153 mmt in FY10)
Import value currently stands at INR 3.7 tr (FY10)
One of the largest net importers of oil globally, imports ~77% of its oil needs based on consumption (1)
1) Source: MoPNG2) Sources : BP Statistical Review of World Energy June 20103) Source: DGH report 2010
0.44% of World’s Oil reserves
0.60% of World’s gas reserves
India’s Hydrocarbon Reserves are a Small Fraction of Global Reserves (2)
India,
0.6% Iran,
16%
Qatar,14%
FSU,
31%
ROW,15%
Russia,
24%
India,0.4%
OPEC,
77%
ROW,
22%
Oil Gas
Indian National Oil Champion : ONGC DomesticOperations
1
2
3
4
5
6
7
8
9
10 11
Western Onshore 7 3
Western Offshore 2 6
Assam Shelf 2 1
Tripura 2 0
KG Offshore 2 2
KG Onshore 6 2
CauveryOnshore
1 3
Principal Producing Areas
Discoveries SinceFY09
Prospects Pools
India Footprint
Highest share of hydrocarbon acreage in India
Discovered 6 of 7 Domestic Producing Basins (1)
21 new notified discoveries in FY10 & 19 in FY11 (2)
All Crudes are Sweet and large portion being light
INR158 bn of capital / exploration in progress(3)
INR592 bn of capex plan over FY11 and FY12 (4)
1) Source DGH. Category 1 sedimentary basins2) Through Jan 27, 20113) As of FY104) As approved by the board of directors
1,000 km
1 Himalaya & Ganga Valley 14.9
2 Rajasthan 0.2
3 Cambay 9.4
Mumbai Offshore 40.6
4 Kutch - Saurashtra 43.8
Kerala - Kinkan 108.8
Krishna - Godavari 101.3
5 Cauveri 84.9
Mahanadi - Bengal 57.6
6 Assam - Arakan 16.6
7 Mahanadi - Bengal - Purnea 6.8
8 Satpura - S.Rew a - Vindhyan -
Pranhita - Godavari 15.7
9 Krishna - Godavari 4.9
10 Cauveri 5.4
11 Andaman - Nicobar Offshore 70.3
10
Mahanadi 1 0
Source: DGH; All data as on March 31, 2010.Discoveries as of Jan 27, 2011
ONGC Operated Area(1,000 km2)
Region
ONGC
51%
RIL
28%
Others
15%
Cairn
4%
OIL
2%
11
ONGC: Domestic Strength in Acreage andProduction
PEL Area (Sq. km)ML Area (Sq. km)
Crude Oil Production(FY10)
Natural Gas Production(FY10)
Source MoPNG ; ONGC figures include its share in JV
1) Note: PEL – Petroleum Exploration License, ML – Mining Lease; Includes NELP and nomination blocks2) Source: DGH
ONGC
67%
OIL
13%
Cairn
10%
Others
9%
RIL
1%
OIL
11%
Others
10%
ONGC
79% OIL
5%
Others
41%ONGC
54%
Strong Reserves Accretion
Highest in last 2 decades in
ONGC operated domestic
fields
Domestic ReserveReplacement Ratio (RRR)
RRR more than 1
Note: Excludes JVs ; RRR for 3 P reservesNote: Excludes JVs ; Reserve accretion for 3P
ONGC awarded more than 50% of NELP blocks
4 Under Development Assets 20 Exploration Assets9 Producing Assets
Cuba
Venezuela
Colombia
Brazil
Vietnam
Myanmar
Russia
Iran
Syria
Iraq
EgyptSudan
Nigeria
Libya
Nigeria JDZ
Significant International Footprint (OVL)
34(1) projects across 15 countries• Sole Operated (11); Jointly Operated (6) and
Non Operated (16) 20 years of 1P and 40 years of 2P reserves Production accounts for ~11% of India’s FY10 production
Access to International Partners / NOCs Amongst the largest overseas investors from India –
INR535 bn Net worth of INR116 bn
2
1 1
1 5
1 5
1 1
1
1
2
2 11
2
1 1
2
1
Note: 34th Asset is Sudan’s 741km long product pipeline(1) Other than the 34 projects mentioned above there are 6 projects/blocks which are currently being relinquished by the ONGC Group12
Strong Relationship and Access to InternationalPartners / NOC
Partnership Across Regions…… and with International NOCs and Oil Companies…
13
Sudapet
Sodeco
SinopecShell
Repsol YPF
KOGASMOGE
BP
CNPCDaewoo
Exxon
PV
Petronas
PDVSA
Statoil
IOCL
OIL
GAIL
BPCL
Petrobras
ECOPETROL
RosneftTotal
14
OVL : Key Investments
GNOP (25%)
CNPC –40% , Petronas –30%,
Sudapet –5%
Produced Oil of 2.126mmt during
FY10
Block 5A (24.125%)
Petronas 67.9%, Sudapet 8%
Produced Oil of 0.247mmt during
FY10
Block 6.1 (45%)
BP (Operator) -35%, PV-20%
Produced Oil of 0.042mmt during FY10
Produced Gas of 1.97bcm during FY10
OVL 20% stake
Exxon (Operator)–30% , Sodeco –
30% , Rosneft (20%)
Produced Oil of 1.532mmt during
FY10
Produced Gas of 0.39bcm during
FY10
Russia:Sakhalin-I
Sudan Vietnam
Venezuela Colombia Syria
AFPC (Himalaya Energy (Syria) B.V. –
33.3% to 37.5%)
Himalaya Energy is a 50%-50% JV of
OVL and CNPC
Shell – 66.7% to 62.5%
Produced Oil of 0.718 mmt during FY10
MECL (50%)
Sinopec (50%)
Produced Oil of 0.409 mmt during FY10
San Cristobal (40%)
CVP (60%)
Produced Oil of 0.704 mmt during FY10
15
OVL : Key Investments (Cont’d)
Deepwater offshore Block
ONGC 15%, Shell 50%,
Petrobras 35%
First oil production on July 12th
2009
Production of 0.192 mmt in
FY10
Ownership interest developing
Carabobo blocks Consortium:
ONGC 11%, Oil 3.5%, IOCL
3.5%
Repsol 11%, Petronas11% &
PDVSA 60%
Producing Asset in West
Siberia
Acquired in Jan 2009 for
US$2.1 bn
Production of 0.543 mmt in
FY10
Extension of one of the field
discovered in 2010 to be put
on production in the near term
ImperialEnergy
BC-10, BrazilCaraboboVenezuela
16
ONGC Group : Large and Growing Reserve Base
Reserve Base (As Per Management Estimates)
OVL
29%
ONGC
71%
mtoe
1867371P
3P
2P
3981,175
357969
OVLONGC
Diversified Reserve Base
ONGC
78%
OVL
22%
OilGas
mtoe
Note: The management estimates of the reserves of ONGC Group are under review by independent third party and maybe subject to changes. We intend to make the outcome of that review publicly available
26.1 27.9 27.9 27.1 26.5
4.65.8 6.8 6.6 6.5
FY06 FY07 FY08 FY09 FY 10
ONGC (incl. JVs) OVL
25.0 24.9 25.1 25.5 25.6
1.8 2.2 2.0 2.2 2.4
FY06 FY07 FY08 FY09 FY 10
ONGC (incl. JVs) OVL
17
ONGC Group: Operating Performance
30.733.7 34.7 33.6 33.0
26.8
27.027.1
27.7 28.0
57.4
60.761.8 61.2 60.9
FY06 FY07 FY08 FY09 FY 10
Oil Gas
Steady Production With production from OVL Increasing Domestic Production
(in MTOE)
Note: ONGC includes JVs
Offshore,
70%
Onshore,
30%
Oil (FY10)
Gas (FY10)
Offshore,
77%
Onshore,
23%
18
Improved Recovery Through Prudent Measures
Recovery Factorimproving from 28% inFY01 to 33.5% in FY10
21 IOR/EOR &Redevelopment projects
worth ~INR209 bn ofinvestment upto FY10
Fast track developmentof discoveries
Strong impetus on EOR /IOR Process to improveglobal recovery factor
by 2020
Cumulative oil gain ofmore than 56 mmt
6 Projects underimplementation
15 Successfullycompleted Projects
ArrestingProduction
Decline
ArrestingProduction
Decline
19
E&P Infrastructure And Capabilities
28 Seismic SurveyCrews
77 Drilling Rigs58 Workover Rigs107 Well Stimulation
Units
Inte
gra
tio
nA
cro
ss
E&
PV
alu
eC
hain
198 OffshoreInstallations
25 Offshore SupplyVessels
240 OnshoreInstallations
Uran, Maharashtra
Handling Capacity: 20 mmtpa Oil & 16 mmscmd Gas
Products: LPG, ARN, SKO, ATF, Propane, HSD
Ankleshwar and Gandhar, Gujarat
Handling Capacity: 0.1 mmtpa Oil & 1 mmscmd Gas
Products: LPG, NapthaTatipaka, Andhra Pradesh
Handling Capacity: 0.1 mmtpa Oil
Products: Naptha, SKO, HSD,
Fuel Oil
Kuthalam, Kaveri, Tamil Nadu
Products: Naptha, SKO,
heavy cut
Production &Transportation
Facilities(1)
Exploration Facilities(1)
ProcessingInfrastructure
6,707 km of sub-sea pipeline
26,598 km of pipelines in India
~34% of the Entire Nation’s
Crude Pipeline
Hazira, Gujarat
Handling Capacity: 42 mmscmd Sour Gas
Products: LPG, C2-C3, LAN
(1) Does not include 6 seismic crews, 47 drilling rigs, 21 workover rigs, 1 simulation vessel and 36 OSV/SMSVs charter hired
20
Integration into Refining
Current Plant
Current Plant
Expansion Project
MRPL is Well Positioned to leverage Improving Refining Fundamentals
Overview
StrongFinancials
StrongTechnological
Capabilities
IntegratedInfrastructure
Expansion
1. MRPL: Mangalore Refinery and Petrochemical Limited2. 2003 till February 1, 20113. As on February 1, 2011
Flexibility to process diverse crude varieties (24-46 API)
Designed to maximize middle distillates
Capability to produce high grade fuels
Captive Power Plant with capacity of 112.5 MW
All weather port at Mangalore
Mangalore-Hassan-Bangalore product pipeline
Expansion to 15 MMTPA at cost of INR 121.6bn (scheduled completion
in Dec, 11)
Revenue of INR360 bn in FY10 ; PAT of INR11 bn
Strong Credit rating - ICRA “IR AAA” & CRISIL “CCR AAA”
Acquired MRPL(1) in March ’03 (holds 71.6%)
– Turned around in less than 4 quarters post acquisition
– Market value up 737%(2); Market Cap of INR116 bn (3)
Capacity: 11.82 mmtpa; T-Put: 12.5 mmtpa and 106% Utilization in FY10
ONGC : 26%
GSPC : 5%
GAIL : 19%
SIs/FIs: 50%
21
Integration Across Energy Value Chain
ONGC Mangalore Petrochemicals Ltd
Incorporated in FY07
Aromatic Petrochemical Complex for manufacturing paraxylene
Scheduled completion Q4, 2012
Mangalore SEZ Limited
Incorporated in FY06
Proposed SEZ for petrochemical industries
Scheduled completion Q3, 2013
ONGC : 23%
GIDC : 26%
ONGC : 26%
KIADB : 23%
ILFS+KCCI: 51%
OPAL
Incorporated in FY07
Dual feed cracker & polymer plants
Scheduled completion Q3, 2013
ONGC : 46%
MRPL : 3%
ONGC Tripura Power Company
OTPC incorporated in FY2005
726.6 MW (2x363.3) Power Project in Tripura
Scheduled Completion Q2, 2012
ONGC : 50%
ILFS: 26%
Govt. Tripura: 0.5%
Others: 23.5%
Dahej SEZ Limited
Incorporated in FY05
Proposed SEZ for petrochemical industries
Scheduled completion Q3, 2011
22
New Growth Initiatives : Others
Wind Farms
50 MW Wind Farm commissioned in Sep FY08 - in Gujarat
Estimated financial benefit to the tune of INR 450 mn per annum
Plan approved for another 100 MW Wind Farm in Rajasthan
Coal Bed Methane
Operating in 5 CBM blocks
CBM production from Parbatpur, Jharia (Pilot project) commenced from Jan, 2010
MoU with Arrow Energy, Australia
CBM
Underground Coal Gasification
Collaboration with Skochinsky Institute of Mining (SIM), Russia
Site at Vastan, Gujarat selected
Environmental clearance obtained for the Pilot Project in Feb, 2010
Mining Lease awaited from GoI
UCG
Shale Gas Integrated Pilot project launched in Damodar valley (eastern India) in April, 2010 In association with Schlumberger First well spudded on 21st Sept 2010; Created exploration landmark on Jan 25, 2011 as Gas
flowed from the R&D well in Durgapur
Shale
Gas
Key Industry Themes
Subsidy Sharing Mechanism
Oil & Gas Production
from Overseas Assets
Enhance Production
(IOR/EOR)
Forge New Partnerships (Eg.
Recent Framework Agt.)
Equity Oil –
Inorganic Growth
Integration Projects
23
Visionary Leadership and Strong ManagementTeam
Management Team with significant experience in the Oil & Gas industry
Chairman & Managing DirectorShri A.K.Hazarika*
Functional Director(Full Time)
Functional Director(Full Time)
GovernmentNominees
GovernmentNominees
IndependentDirectors
IndependentDirectors Special InviteesSpecial Invitees
Shri R.S.ButolaMD, OVL
Shri R.S.ButolaMD, OVL
Shri Sudhir BhargavaAddl. Secretary, MOP&NG
Shri Sudhir BhargavaAddl. Secretary, MOP&NG
Smt.L.M.VasAddl. Secretary, MOF
Smt.L.M.VasAddl. Secretary, MOF
Shri S.BalachandranShri S.Balachandran
Shri S.S.RajsekarShri S.S.Rajsekar
Shri Santosh NautiyalShri Santosh Nautiyal
Director (Onshore)Shri A.K.Hazarika
Director (Onshore)Shri A.K.Hazarika
Director (Offshore)Shri S.Vasudeva
Director (Offshore)Shri S.Vasudeva
Director (Finance)Shri D.K.Sarraf
Director (Finance)Shri D.K.Sarraf
Director (T&FS)Shri U.N.Bose
Director (T&FS)Shri U.N.Bose
Smt. Anita DasSmt. Anita Das
Board Of Directors
24
* Officiating Chairman and Managing Director
475
421434
FY08 FY09 FY10
25
ONGC Group: Consolidated Financial Performance
Total Revenues (INR in bn)
1,0861,0361,106
FY08 FY09 FY10
17.9%
19.2%
17.9%
PAT (INR in bn)
194199 198
FY08 FY09 FY10
39.2%40.6%
43.7%
EBITDA (INR in bn)
Cash from Operations (INR in bn)
290290288
FY08 FY09 FY10
Improving EBITDA Margins
Stable Cash flows
Sustained Performance
Maintaining Profitability
0.01x0.01x
0.05x
FY08 FY09 FY10
26
ONGC Group: Consolidated Financial Performance(Cont’d)
Dividend (INR in bn), Payout Ratio (%) Debt Equity Ratio (INR in bn)
90.7292.91 92.55
FY08 FY09 FY10
916
774
1,006
FY08 FY09 FY10
Networth (INR in bn) EPS (INR / share)
71
68 68
36.6%
34.4%34.2%
FY08 FY09 FY10
Strong Reserves
High Dividend Payouts
Rs 161
Rs 130
9M FY10 9M FY11
Rs 71
Rs 31
Q3 FY10 Q3 FY11
Rs 331
Rs 281
9M FY10 9M FY11
Rs 506
Rs 454
9M FY10 9M FY11
Rs 186Rs 154
Q3 FY10 Q3 FY11
ONGC: Standalone 9 month FY11 Result Overview
Revenue growth of 11.4% during nine month
period ended December 31, 2010
Q3 revenue up by 21.4%
Net Profit up by 24% during nine month period
ended December 31, 2010
Q3 Net Profit up by 132%
For 9M FY11Gross Realisation of US$83.00/bbl
For 9M FY11 Net Realisation of US$58.72 /bbl
Revenue (INR bn)
Net Profit (INR bn)
11%
21%
24%132%
Overview
27
EBITDA (INR bn)
18%
45%
Rs 135
Rs 93
Q3 FY10 Q3 FY11
28
The Subsidy Impact ….
Subsidy and Impact of Subsidy on PAT (INR in bn)
Subsidy sharing mechanism devised by Government of India in 2004
Under-recovery is on the production from ‘nominated’ fields
ONGC Group continues to realize international prices on production from PSC JVs and OVL
There is no surrender of ‘Profit Petroleum’ to Government on revenue from nominated fields
Overview of the Subsidiary Mechanism
158
66 73
116
282
128
2009 2010 9M FY11
29
Corporate Governance and CSR Policies
First ‘Sustainability Report’ as per GRi-G3 guidelines published
Health Safety and Environment Framework in place
CSR allocation increased to 2% of net profit in FY10 from 0.75%
ONGC Whistle Blower Policy in place
Robust IT Infrastructure in place
Environmental Focus Whistle Blower PolicyCSR Initiatives
Thank youThank you