IS Advisors ONGC LTD. - COMPANY INFORMATION & SWOT ANALYSIS December 2011
Table of Contents 1. Snapshot 3 1.1 Company Details 3 1.2 Company Address 3 1.3 Price Information 3 1.4 Company Size 3 1.5 Company vs. Sensex 3 2. Financial Highlights 4 5 2.1 Key Financials (in USD) 4 2.2 Key Ratios 5 2.3 Market Cues 5 3. Profile 6 9 3.1 Background 6 3.2 Milestones, Achievements & Recognitions 8 3.3 Subsidiaries of the Company 9 4. Key Personnel 10 5. Shareholders Information 11 5.1 Shareholding Pattern (Last 5 Quarters) 11 5.2 List of Key Shareholders 11 6. Peer Group Comparison 12 7. Latest News & Developments 13-14 8. SWOT Analysis 15-30 8.1 Strengths 16 8.2 Weaknesses 24 8.3 Opportunities 25 8.4 Threats 29 9. Financials (in USD) 31 9.1 Quarterly Income & Expenditure Statement 31 9.2 Annual Income & Expenditure Statement 34 9.3 Balance Sheet 35 9.4 Cash Flow Statement 37 10. Ratio Analysis 38 41 2
5. SHAREHOLDERS INFORMATION SHARE HOLDING PATTERN (LAST 5 QTRS HOLDING %) DESCRIPTION INDIAN PROMOTERS INSTITUTIONS FOREIGN INSTITUTIONAL INVESTORS OTHERS NON-INSTITUTIONS Sep-11 12.16 5.17 6.99 13.7 Jun-11 12.21 4.84 7.37 13.65 Mar-11 12.07 4.45 7.62 13.79 Dec-10 12.3 4.69 7.61 13.56 Sep-10 12.38 4.6 7.78 13.48 KEY SHAREHOLDERS (%) NAME THE PRESIDENT OF INDIA INDIAN OIL CORPORATION LTD ONGC FPO ESCROW ACAOUNT LIFE INSURANCE CORPORAITON OF INDIA GAIL INDIA LTD Sep-11 69.14 7.69 5 3.17 2.4 Jun-11 7.69 0 3.09 2.4 Mar-11 Dec-10 Sep-10 7.69 7.69 7.69 0 0 0 3.09 3.06 3.1 2.4 2.4 2.4 11
7. Latest News & Developments ONGC INVESTING INR 25,000CRORE IN 11 PROJECTS State-owned Oil and Natural Gas Corporation (ONGC) is spending nearly INR 25,000crore for 11 projects. It has taken up the development of marginal fields through 14 projects, out of which three projects have been completed. The company entailed an investment of INR 27,305.05crore in the 14 projects. Of these three, INR 506.22crore developments of D-1 field, INR 219.77crore SB-11 development and INR 1,688.38crore investment in development of Vasai East in western offshore, have been completed. However, another 11 projects entailing an investment of Rs 24,890.38 crore are under various stages of investment. Among these 11 projects the biggest projects is B-193 cluster development at the cost of INR 5,633.44crore, which will yield 5.57 million tonne of oil and 5.12 billion cubic meters (bcm) of gas in 15 years. The project is scheduled to be completed by June 2012. Besides, another INR 3,241.03crore is being spent on Cluster-7 development by March 2013 to produced 9.73 million tonne of oil and 4.52 billion cubic meters of gas over a period of 16 years. ONGC PLANS TO SET UP GAS PROCESSING PLANT IN MAHARASHTRA State-run explorer Oil and Natural Gas Corporation (ONGC) plans to set up a gas processing plant near Dahanu in Maharashtra. It plans to process gas produced from its marginal fields on the west coast at Dahanu unit. The company will set the plant at an estimated investment of $3 billion and is looking at a peak capacity of 8 million cubic meters per day. The company is expected to tie up with global companies to boost its domestic deep-water hydrocarbons hunt. The company had won 19 oil and gas acreages, including the East Coast ultra-deepwater gas discovery of the company through domestic licensing rounds. 13
OPPORTUNITIES BRIDGING DEMAND SUPPLY GAP: India, 4 th largest economy on Purchase Power Parity, has emerged as prominent consumption zone for all forms of energy. According to the International Energy Agency (IEA), hydrocarbons account for the majority of India s energy use. Coal and oil together represent about two-thirds of total energy usage. Besides, nation currently meets 80% of its total crude needs through imports. Crude oil imports accounted for 29% of its total import bill of $350 billion in the year ended March FY11. Our country is seeking to fasten exploration in its largely unexplored 3.14 million square kilometers of sedimentary basin in the years coming ahead to cut its import bill which would decrease its dependence on foreign countries for meeting its energy needs. ONGC plans to spend INR 1.75 trillion over the five years ending March 2017. ONGC s crude production target has been raised from 125 million tonnes in the 11th Five-Year Plan to 130 million in the 12th Plan. Production in the offshore fields will start in 2013, and would generate about five million tonnes, or 19 per cent of ONGC's total oil output. 25