ONGC targets capital expenditure of Rs 30,125cr in current fiscal

NEW DELHI:

ONGC has targetted a lower capital expenditure of Rs 30,125 crore in the current fiscal as against the corresponding year, the company's chairman Arun Kumar Singh told reporters in a virtual press conference.

The capital expenditure will be mainly sourced from internal accruals.

In 2022-23, the capital expenditure was Rs 30,208 crore for ONGC.

Singh said that in the last five years, ONGC has spent around Rs 1,44,000 crore on capital expenditure.

He added that the government's new gas pricing policy is going to be game-changer.

It pegs the floor at $4 per mmBtu and ceiling at $6.5 per mmBtu.

If it is assumed that this price continues at $6.5 for two years and the there is 25 paise increase, and assuming that crude remains above $70 (per barrel)...ONGC's revenue stream will remain robust," Singh said.

The company reported a decline in its consolidated net profit for the fourth quarter of 2022-23, which fell to Rs 5,701 crore from Rs 12,061.44 crore in the corresponding period last year.

This was due to the company making a provision of Rs 12,107 crore towards disputed service tax and GST on royalty and interest on it in the period between April 1, 2016 and to March 31, 2023.


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