IndiaCatalog.com
India News
Search Web Directory
News Home
HPCL, GSPC deals to hit oil PSU dividends in FY18 by at least 17%
Posted on 16th March 2018
India’s largest hydrocarbon producer, Oil and Natural Gas Corporation (ONGC), has told the government it will not raise the dividend payout for 2017-18.

The reason is that it had to go for two major deals, both on government order. Of acquiring a majority stake in Hindustan Petroleum Corporation (HPCL) and Gujarat State Petroleum Corporation’s (GSPC’s) KG basin gas block.

According to multiple sources, this would mean a cut of about 17 per cent on the dividend collected from petroleum companies, to Rs 145 billion in 2017-18 from Rs 175 billion in 2016-17.

“ONGC has informed the finance ministry that it is not in a position to pay higher dividend and might only be able to maintain last year’s payout ratio,” said a source. Based on this, the government had agreed to restrict the dividend payout to 45 per cent of the company’s net profit.

In this financial year, ONGC had completed the acquisition of an 80 per cent stake in GSPC’s KG basin gas block for Rs 77.4 billion. In January, it bought a 51.1 per cent government stake in HPCL for about Rs 369 billion.

Last year, the government had demanded higher dividend from its three oil marketing companies (OMCs) - Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL), and HPCL. The reason given was that their earnings and profit had risen in the first half of the financial year.

“This year, the average has been kept between 40 and 60 per cent for petroleum sector companies.

IOC’s share comes to around Rs 55 billion and that of ONGC at Rs 52 billion. These numbers include the final dividend of last year and interim dividend of this one,” said a government official, on condition of anonymity.

During 2016-17, higher dividends from cash-rich public sector undertakings had provided the exchequer a fiscal cushion. Petroleum companies saw a 71.3 per cent rise in dividend to Rs 175 billion.

The net profit of the government-owned exploration and production companies — ONGC, Oil India, and GAIL (India) — together dropped around one per cent during the first half of the current financial year. That of the three OMCs dropped 23 per cent from Rs 181.1 billion during the first half of last year to Rs 140 billion during the same time this year.

Related Companies: Hindustan Petroleum Corporation Ltd.(HPCL)   

Other Latest News
Tuticorin custodial death case: Three more cops arrested by CBI
Posted on 2nd July 2020
The Crime Branch of Criminal Investigation Department (CB-CID) on Wednesday arrested three more cops in connection with the alleged custodial deaths of a father-son duo at a Tamil Nadu police station.

Sub Inspector Balakrishnan and constables Muthuraj and Murugan were arrested by the investigation agency on charges of murder under Section 302 of the Indian Penal Code.

Haryana govt orders schools, colleges to remain closed till July end; teachers to join from July 27
Posted on 2nd July 2020
The Haryana government on Wednesday stated that all educational institutions will remain closed for students in the state till July 31 in line with the Unlock 2.0 guidelines issued by the Centre.

Schools, colleges, and universities in the state will remain closed for students until the end of July.

Amidst focus on WHO, India appoints new envoy to UN bodies in Geneva
Posted on 2nd July 2020
Indra Mani Pandey has been appointed as the next Indian envoy to UN bodies and other international organisations in Geneva. A sensitive post, he will represent India in more than 25 important organisation of the United Nations in Geneva including World Health Organisation (WHO) and the United Nations Human Rights Council (UNHRC).

He will have an important task at hand, given the calls are growing for reforms at the WHO due to its failure to deal with the COVID-19 pandemic.

'Will boost India's sovereignty, national security': US welcomes Modi govt's ban on 59 Chinese apps
Posted on 2nd July 2020
The United States on Wednesday welcomed the Indian government's decision to ban 59 Chinese apps, including TikTok and WeChat, saying that the move will boost the country's sovereignty and national security.

Addressing the State Department press conference, US Secretary of State Mike Pompeo said, We welcome India's ban on certain mobile apps. India's clean app approach will boost India's sovereignty and boost integrity and national security.

Priyanka Gandhi Vadra's govt accommodation cancelled, asked to clear Rs 3.46 lakh dues
Posted on 2nd July 2020
Congress leader Priyanka Gandhi has been asked to vacate her Lodhi Estate bungalow after living there for the past 23 years. The Central Government on Wednesday cancelled government accommodation allotted to her and asked her to vacate the house within one month.

A notice regarding this was issued to the Congress General Secretary by the Union Ministry of Housing and Urban Affairs. The decision was taken as she is not an SPG protectee now.

» Post a FREE Classified Advertisement
Inviting Real Estate Agents, Job Placements Agents, Educational Institutes, Software Service Providers, Real Estate Builders, Marriage Bureaus, Travel Agents, Restaurant Owners, Health & Fitness Centers and other Local Businesses to Post a FREE Classified Advertisement on Cootera.com Classifieds Website.
Jobs in India India Real Estate Automobiles Matrimonials Beauty & Fitness

Add a comment for HPCL, GSPC deals to hit oil PSU dividends in FY18 by at least 17%
Please only use this form to enter comments on the above company. All comments are reviewed before they are displayed on the web site. Not all comments may be displayed. Check back with us to see if your comments have been displayed.
If you want us to email the comments posted by users, please Subscribe by email
Name*
Comments*
Security Code*
 

Be the first person to write a business review for HPCL, GSPC deals to hit oil PSU dividends in FY18 by at least 17%

Most Read News

India's COVID-19 tally crosses 5 lakh mark; more than 18,000 cases reported in a day

Gold price today falls to Rs 47,900 per 10 gm, silver at Rs 47,700 per kg

Ready to reopen Kartarpur Sahib for all Sikh pilgrims on June 29: Pakistan

Delhi following strategy of 'very aggressive' COVID-19 testing, conducted highest number of tests on June 26: Kejriwal

Followed all procedures to manufacture Covid-19 medicine: Balkrishna

More India News

  India Web Directory
Business Profiles
Automotive Directory
IT/ITES/BPO Directory
Hotel Directory
Health Directory
Business Directory
Gems & Jewellery
Education Directory
Real Estate Directory
Agriculture Directory
Logistics Directory
Yellow Pages
NRI Guide
Photo Galleries
Global Web Directory
*** FREE India Classifieds
Order Premium Listings
Submit a Site
Business Reviews
Home
About us
Link to us
Advertise
Contact us
Google Search Keywords: India Catalog, IndiaCatalog, India Web Directory
    © 1999 - 2020 IndiaCatalog.com
    All Rights Reserved
Privacy Statement