India's ONGC Videsh Ltd., the wholly-owned subsidiary of Oil and Natural Gas Corporation Ltd. (ONGC), recorded a 57.16 percent decline in net profit for financial year (FY) 2015 that ended March 31 to $298.93 million (INR 19.04 billion), compared to $697.87 million (INR 44.45 billion) in 2014, the company said Monday.
Revenue fell 14.63 percent in the corresponding period to $2.9 billion (INR 184.91 billion) from the previous year's $3.4 billion (INR 216.59 billion) despite a 6.19 percent increase in oil and gas production to 8.874 million tons of oil equivalent.
"Despite higher production during FY 15, the decrease in profit is mainly due to lower oil prices, higher financing cost including exchange loss, higher depletion charge, and impairment provision in one of the assets," ONGC Videsh said in the press statement.
Global benchmark Brent crude oil futures traded at around $108 a barrel when ONGC Videsh's FY 2015 got underway April 1, 2014, with prices falling over 47 percent to just over $57 a barrel when the reporting season ended March 31.
The Indian company, with its focus on overseas upstream petroleum business, increased its oil and gas production by 0.86 percent and 16.37 percent in FY 2015 to 40.57 million barrels (5.533 million tons) and 117.94 billion cubic feet (3.341 billion cubic meters) from 40.21 million barrels (5.486 million tons) and 101.35 billion cubic feet (2.871 billion cubic meters), respectively
"The incremental (oil and gas) production is primarily due to better management and addition in the portfolio," the firm explained.
ONGC Videsh currently participates in 36 projects in 17 countries including Azerbaijan, Kazakhstan, Russia, Brazil, Colombia, Venezuela, Iraq, Syria, Libya, South Sudan, Sudan, Mozambique, Bangladesh, Myanmar, Vietnam and New Zealand.
Of these, 13 are producing, 4 are discovered or under development, 17 are exploratory and the remaining 2 are pipeline projects.
Operations-wise, the firm reported that the present geo-political situation in Syria, including European Union sanctions and the resulting restrictions on contractors, continues to adversely affect its Syrian operations since December 2011.
ONGC Videsh currently produces around 167,000 barrels of oil and oil equivalent gas per day, with the ONGC's subsidiary holding total oil and gas (2P) reserves estimated at around 612 million tons of oil equivalent as of March 31.
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