ONGC FPO in March

Jan 29, 2011 |

Correspondent

New Delhi, Jan. 28: Oil major ONGC is likely to come out with its follow on offering by March 15. The government is planning to sell a 5 per cent stake in the company, which should fetch up to `13,000 crore. In the run-up to the offering, the company has announced a special interim dividend of `32/share.

It also plans to issue bonus shares in the ratio 1:1 and to split one of its existing share into 2.

The upstream major has also managed to post a strong set of numbers for the December quarter, which should help investor sentiment.

It recorded a net profit of `7,083 crore for the three months ended December ’10, up from `3,053 crore for the same period last fiscal.

The increase in profit has been because of higher crude oil prices. During the quarter, ONGC made $64.8 for every barrel of crude oil that it sold, versus $57.7 for the same period last year.

The actual price of crude oil during the quarter was $89, but the company also has to subsidise the oil marketing companies, which are reeling under losses from selling diesel and kerosene below cost.

Profits were higher also because of a one time payout of `1,987 crore that the company received from the government for some past dues.

The operational performance of the firm — crude oil and natural gas production — was similar to the last year.

Post new comment

<form action="/comment/reply/54593" accept-charset="UTF-8" method="post" id="comment-form"> <div><div class="form-item" id="edit-name-wrapper"> <label for="edit-name">Your name: <span class="form-required" title="This field is required.">*</span></label> <input type="text" maxlength="60" name="name" id="edit-name" size="30" value="Reader" class="form-text required" /> </div> <div class="form-item" id="edit-mail-wrapper"> <label for="edit-mail">E-Mail Address: <span class="form-required" title="This field is required.">*</span></label> <input type="text" maxlength="64" name="mail" id="edit-mail" size="30" value="" class="form-text required" /> <div class="description">The content of this field is kept private and will not be shown publicly.</div> </div> <div class="form-item" id="edit-comment-wrapper"> <label for="edit-comment">Comment: <span class="form-required" title="This field is required.">*</span></label> <textarea cols="60" rows="15" name="comment" id="edit-comment" class="form-textarea resizable required"></textarea> </div> <fieldset class=" collapsible collapsed"><legend>Input format</legend><div class="form-item" id="edit-format-1-wrapper"> <label class="option" for="edit-format-1"><input type="radio" id="edit-format-1" name="format" value="1" class="form-radio" /> Filtered HTML</label> <div class="description"><ul class="tips"><li>Web page addresses and e-mail addresses turn into links automatically.</li><li>Allowed HTML tags: <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd></li><li>Lines and paragraphs break automatically.</li></ul></div> </div> <div class="form-item" id="edit-format-2-wrapper"> <label class="option" for="edit-format-2"><input type="radio" id="edit-format-2" name="format" value="2" checked="checked" class="form-radio" /> Full HTML</label> <div class="description"><ul class="tips"><li>Web page addresses and e-mail addresses turn into links automatically.</li><li>Lines and paragraphs break automatically.</li></ul></div> </div> </fieldset> <input type="hidden" name="form_build_id" id="form-3816e04f5e1e4172eeec65c02b6be177" value="form-3816e04f5e1e4172eeec65c02b6be177" /> <input type="hidden" name="form_id" id="edit-comment-form" value="comment_form" /> <fieldset class="captcha"><legend>CAPTCHA</legend><div class="description">This question is for testing whether you are a human visitor and to prevent automated spam submissions.</div><input type="hidden" name="captcha_sid" id="edit-captcha-sid" value="88696920" /> <input type="hidden" name="captcha_response" id="edit-captcha-response" value="NLPCaptcha" /> <div class="form-item"> <div id="nlpcaptcha_ajax_api_container"><script type="text/javascript"> var NLPOptions = {key:'c4823cf77a2526b0fba265e2af75c1b5'};</script><script type="text/javascript" src="http://call.nlpcaptcha.in/js/captcha.js" ></script></div> </div> </fieldset> <span class="btn-left"><span class="btn-right"><input type="submit" name="op" id="edit-submit" value="Save" class="form-submit" /></span></span> </div></form>