ONGC will bear Rs.38.32bn towards upstream discount: AK Hazarika

Posted By: Religare
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ONGC will bear Rs.38.32bn towards upstream discount
AK Hazarika, Acting Chairman, ONGC, stated that ONGC will bear around Rs.38.32bn more towards upstream discount which in turn will lessen the oil company"s profit by Rs 20bn.

But, he added that the net profit in 2010-11 will surpass that of 2009-10.

Moreover, the involvement in subsidy sharing pattern for FY11 by the upstream companies such as ONGC, Oil India and GAIL will be at 38.5% against the earlier expectations of 33%.

The EPS of these companies will be influenced due to the increase in the subsidy sharing pattern.

AK Hazarika also added that as a result of the additional subsidy ONGC has been asked to pay Oil Marketing Companies (OMCs), it will witness a modest rise in the net profit for FY11 in spite of the high prices of crude oil.

Oil and Natural Gas Corporation Limited is an Indian state-owned oil and gas company headquartered at Dehradun, India.

It is a Fortune Global 500 company ranked 413,[2] and contributes 77% of India's crude oil production and 81% of India's natural gas production.

It is the highest profit making corporation in India, according to filings with the BSE of latest quarter results.

Read more about: ongc, oil and gas, bse, nse
Story first published: Tuesday, May 24, 2011, 13:34 [IST]
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