State-owned exploration major Oil and Natural Gas Corporation (ONGC) registered a 50 percent jump in net profit for the 2004-05 fiscal at Rs.129.83 billion despite a big subsidy payout and controlled pricing on gas.

"The net profit of Rs.129.83 billion was registered after subsidy payout of Rs.41.04 billion (53 percent or Rs.26.90 billion in 2003-04) to the oil refining and marketing companies by way of incremental discount of crude prices," said Subir Raha, chairman and managing director of ONGC, at a press conference Monday to announce the audited results for 2004-05 fiscal.

In addition, the "under-recoveries due to controlled pricing of gas and related administrative instructions from the government" had also hit the company's profits, which nonetheless soared to record the highest-ever net profit, Raha said.

The biggest revenue gainer for ONGC was the high realisation of $6-8 per barrel of crude oil with global prices scaling new heights. ONGC crude is linked to global prices of Bonny Light crude.

During the year, ONGC's oil plus oil-equivalent gas output increased by 1.99 percent to 58.42 million tonnes oil equivalent from domestic and overseas fields.

ONGC currently holds stakes in 15 overseas properties in over a dozen countries.

The company has announced the highest-ever dividend of Rs.57.04 billion at the rate of 400 percent. This includes the Rs.28.52 billion interim dividend paid to the government at 200 percent.

"Of the four discoveries ONGC made in the country during 2004-05, the offshore fields VA-1 in eastern offshore and D-33 in western offshore are promising and the appraisal process is underway," Raha said.

The company is planning to invest Rs.100 billion this year within the country while it is studying options for overseas investments, which have so far been in the range of $1 billion every year.

During 2004-05, the company invested Rs.106.18 billion in the redevelopment of old fields and exploration activities in the country.