For the first time in a decade, ONGC Videsh (OVL) has reported a net loss — of Rs 2,094 crore — in FY16. This is primarily due to Rs 3,042 crore of impairment losses booked by the overseas subsidiary of ONGC. In FY15, OVL had reported a net profit of Rs 1,904 crore.
On April 5, FE had reported OVL may have slipped into the red in FY16 due to the combined effect of flat growth in its oil and gas output, low crude oil prices and impairment of assets. In FY16, gross revenues were reported at Rs 12,772 crore, a 33.3% drop against Rs 19,149 crore in FY15. ONGC CMD D K Sarraf said that the impairment provisions are “dynamic” and does not reflect poor performance of OVL. The firm has taken a crude price outlook of $40-$54/barrel in the near and short-term. fe Bureau