“There were other one time items which have impacted the company’s profitability in the fourth quarter apart from the higher subsidy payout. These include provision for Krishna-Godavari block development, pay revision and gratuity liability,” Mr D. K. Sarraf, Director, Finance, said. He said that the company gave a discount of $50.71 per barrel in the fourth quarter on a gross realisation of $100.37 a barrel.

For the fiscal under review, the crude oil price realisation before extending discounts to OMCs stood at $85.54 a barrel. After a discount of $ 32.64/ barrel, the realisation on crude price stood at $52.90. With surge in crude prices, for the current fiscal it is estimated that the company’s subsidy burden would increase to about Rs 38,000 crore.

The total income stood at Rs 64,859.18 crore for the financial year 2008 (Rs 60,875.91 crore). ONGC Group posted a consolidated net profit of Rs 19,872.26 crore for the fiscal under review.

During the fourth quarter under review, ONGC produced 6.449 million tonne of crude oil down from 6.554 million tonne last year and natural gas of 5.348 billion cubic metres down from 5.664 billion cubic metres in 2006-07. The company was investing aggressively in measures to maintain oil and gas production from its ageing field at the current level. The Board of Directors has recommended highest ever dividend of 320 per cent amounting to Rs 6,844 crore, up 10 per cent from 310 per cent in the previous fiscal. On a face of Rs 10 per share, the annual dividend works out to Rs 32 per share. The Government will get Rs 5,074 crore as dividend plus dividend distribution tax of Rs 1,163 crore.

As regards starting appraisal activity in its KG block, the company is targeting October this year.