Public sector Oil and Natural Gas Corporation's net profit in the January-March quarter slid 13 per cent to Rs 2,682 crore (Rs 26.82 billion), but annual net profit rose to a new high of Rs 15,643 crore (Rs 156.43 billion) in 2006-07 fiscal.

The 13 per cent fall in fourth quarter net from Rs 3,086 crore in the year-ago period was owing to a one time payment of Rs 1,100 crore (Rs 11 billion) in retirement, medical and wage benefits to employees.

The company, whose FY'07 net rose 8 per cent from Rs14,431 crore (Rs 144.31 billion) in 2005-06 despite a payout of Rs 17,024 crore (Rs 170.24 billion) toward subsidising petrol, diesel, domestic LPG and kerosene, also announced an investment Rs 121,318 crore (Rs 1213.18 billion) in finding new oil and gas reserves in the country and acquiring assets abroad by 2012.

The impact of the 442.44 per cent rise in subsidy payout (Rs 11,957 crore or Rs 119.57 billion in 2005-06) was that it pared the net profit by Rs 10,333 crore (Rs 103.33 billion), ONGC [Get Quote] chairman and managing director R S Sharma told a news conference here.

The company saw an 18 per cent rise in turnover to Rs 56,904 crore (Rs 569.04 billion) in 2006-07. The January-March revenue rose to Rs 14,576 crore (Rs 145.76 billion) from Rs 12,528 crore (Rs 125.28 billion).

Sharma said ONGC's gross realisation from sale of crude oil to public sector refiners - Indian Oil [Get Quote], Bharat Petroleum and Hindustan Petroleum - was 66.33 dollars per barrel in 2006-07 and it had to give a discount of 22.14 dollars per barrel for subsidising fuel sales.

Last fiscal, the net realisation was 42.33 dollars per barrel after giving a discount of 17.32 dollars a barrel.

In the fourth-quarter, ONGC gave a discount of 24.84 dollars a barrel over a gross realisation of 60.43 dollars per barrel.

Sharma said the appreciation in the rupee had meant that the company earned less on sale of crude oil. During April-May, the gross billing was 70 dollars per barrel but realisation in rupee term was about Rs 22,100 per ton as against Rs 22,500 per ton at 66.33 dollars per barrel oil price of the previous year.

He said ONGC will invest Rs 121,318 crore (Rs 1213.18 billion) during the 11^th Plan period (2007-12) as against Rs 75,380 crore (Rs 753.80 billion) in 10th Plan period. A sum of Rs 74,795 crore (Rs 747.95 billion) would be for domestic exploration and production, while Rs 45,334 crore (Rs 453.34 billion) would go toward overseas oil and gas field acquisitions.

ONGC spent Rs 25,052 crore (Rs 250.52 billion) on overseas acquisitions in the 10th Plan period (2002-07).

"We have enough reserves to fund the capex for the next five years but may borrow Rs 15,000 to 18,000 crore (Rs 150 to 180 billion) to meet any increased requirements for overseas spending," he said.

ONGC's crude oil production went up by 9 per cent to 26.05 million tons in 2006-07 from 24.4 million tons the previous year. Natural gas production was unchanged at 22.44 billion cubic meters.

"ONGC is eyeing a production of over 140 million tons of crude oil during the 11th Plan (increase of 10 million tons over the 10th Plan) and 112 billion cubic meters of natural gas," he said.