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ONGC
profits up 50 per cent - allotted 15 per cent stake in
Nigerian field
New Delhi: ONGC has announced that it has been assigened
a mere 15 percent stake in Block 2 of Nigeria's Sao Tome
joint development zone, even as the company has posted
its highest-ever profit of Rs12,983 crore in 2004-05,
or a 50 percent increase over the previous year.
Chairman
Subir Raha has said ONGC's overseas investment arm, ONGC
Videsh, and its local partner, Equator Exploration, have
been alloted a mere 15 percent stake in the Nigerian field
though the combine emerged as the highest bidder.
Devon
Energy of the US and and Pioneer have 65 percent equity
in the block, while A & Harmattan has 10 percent,
Foby Engineering and Momo Oil and Gas 5 percent each.
With
this acquisition ONGC now has stakes in 15 properties
in thirteen countries. Raha said ONGC Videsh's production
rose 31 percent to 5.06 million tonnes of oil and gas
in 2004-05 as net profit jumped 78 percent to Rs 761 crore
on Rs 6,026 crore revenue.
Production
from Sudan's Greater Nile field, the only oil-producing
assets as of now, rose from 263,000 barrels per day in
March 2003 to 295,000 barrels per day in March 2005. Gas
production from Vietnam was up 158 percent to 1,349 billion
cubic meters.
Raha
said ONGC registered a 50 percent rise in profit despite
increased subsidy burden of Rs4,104 crore, a jump of 53
percent from the previous fiscal, and under-recovery on
account of selling gas at government-controlled prices.
ONGC
also maintained its increasing trend in oil production
which stood at 28.13 million tonne against 27.71 mt previously.
Gas production, however, declined to 25.23 billion cubic
metres from 25.70 bcm.
Raha
said gas production from Russia's Sakhalin-I field, where
ONGC Videsh has a 20 percent stake, would begin in July
with an initial output of 70 million cubic meters per
day and full production will be reached in 2010. Oil exports
would commence in April 2006 with 12,500 barrels per day
and full production of 50,000 barrels per day would be
reached in December 2006.
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Mumbai
Textile Mill sold for Rs.702 crore
New Delhi/Mumbai: Delhi-based Jwala Real Estate Pvt
Ltd has successfully bagged the tender for the National
Textile Corporation's (NTC) Mumbai Textile Mills 17.5
acre property for a stunning Rs702 crore. This is the
biggest ever realty deal in India and it could push up
property prices in Mumbai.
According to analysts, as per the deal, the price per
square feet is pegged at anywhere between Rs8,000 to Rs12,000,
against Rs4,000 in the recent Jupiter Mill sell-off..
Two more NTC mills - Elphinstone and Kohinoor - are now
lined up for sale.
In a separate deal on Monday, Mumbai-based Lodha Group
won the tender for 7.5 acre of land with Apollo Textile
Mills, another NTC property, by putting in a Rs180 crore
bid.
In March this year, the NTC's 11-acre Jupiter Mills at
Elphinstone Road had fetched Rs276 crore creating a turmoil
in the property market. The bid for Mumbai Textile Mill
is the highest ever and is much higher than the anticipated
winning bid price of Rs400-550 crore.
Last month, a Supreme Court ruling allowed NTC to sell
five of its defunct mill lands to retire outstanding debts
of Rs1891 crore. The NTC has been trying to utilise its
300 acres of real estate situated at prime locations in
Mumbai to repay debts and revive its remaining mills.
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Tata
Steel to get $200 million loan
Hong
Kong:
Tata Steel is working out a $200 million seven-year loan
which it will use to expand production. It plans to build
a $2.3 billion plant in the eastern Chattisgarh state.
Tata steel is also aiming to triple its production to
15 million tonnes by 2010.
The International Finance Corp., the World Bank's private
lending unit, is providing $100 million while other banks
will co-finance the loan.
Tata will pay interest of 0.55 percentage point more than
the London interbank offered rate for the loan.
The company had $1.4 billion in earnings before interest,
tax, depreciation and amortization for the year ended
March.
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Nasscom:
Outsourced engineering services is new growth opportunity
Bangalore: Outsourced engineering services is fast
emerging as a potential growth opportunity that Indian
software companies should tap, said Nasscom officials
at a press meet here on Monday. They said that providing
engineering services to overseas clients promises a huge
business opportunity for Indian software service exporters.
According
to Nasscom officials, the present market potential for
outsourced engineering services is estimated to be between
$ 7 billion to $12 billion, while the value of work currently
undertaken by India-based vendors in this space is estimated
to be around $400 million -$500 million.
Engineering
services include product design, process, plant automation,
and enterprise asset management services. These services
find application in a variety of domains. S Ramadorai,
chairman, Nasscom said that several MNCs have adopted
hybrid sourcing strategies and are working with outsourced
vendors, in addition to the work done out of their captive
units.
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Ambani
feud: emails are now harbingers of peace
New Delhi: After a couple of emails seven months back
contesting who was the boss at the Ambani empire, the
emails have resurfaced, this time indicating that the
brothers are burying the hatchet
While
Mukesh Ambani referred to Anil's enormous energy, drive
and commitment to pushing Dhirubhai's dream and wished
him success in running the telecom business, Anil, resigning
from the board of flagship RIL, wrote that he's proud
of the role Mukesh played translating their father's dreams
to reality.
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S&P:
RIL's credit quality might 'weaken'
New Delhi: Global rating agency Standard and Poor's
has cautioned that the credit quality of Mukesh Ambani
controlled Reliance group's flagship company RIL might
"weaken" if significant cash outflows were part
of the settlement between him and younger brother Anil.
Though financial details are still "unclear",
S&P said, "specifically, significant cash outflows,
possibly resulting from share repurchases, division and
distribution of liabilities and/or the contingent obligations
on RIL, could materially affect the company's financial
profile, which might weaken its credit quality."
However,
S&P noted that the de-merger and eventual exit of
RIL from the group's capital-intensive telecommunications
and power busines should not have a negative impact on
its business risk profile and may even have a positive
impact.
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W.
Bengal will not let Haldia Petro
take part in Basell acquisition
Kolkata: The West Bengal Government will not permit
Haldia Petrochemicals Ltd to participate in The Chatterjee
Group (TCG) led global consortium for the acquisition
of the Amsterdam-based Basell NV as long as it remains
a shareholder of the company. Dr Sabyasachi Sen, Secretary
to the West Bengal Commerce and Industry Department, stated
this.
According to Dr Sen, the West Bengal Government wants
Haldia Petrochemicals to play a significant role in the
development of the State's economy. It does not want to
take the company into the top international league for
now.
However, if the State Government sells its stake to Dr
Purnendu Chatterjee of TCG, it will not attach any rider
to the stake transfer agreement under which it would bar
Haldia Petrochemicals from participating in the Basell
acquisition.
"We will certainly like to see a company from our
State become a global player. But as long as we are a
shareholder, we will not want Haldia Petrochemicals to
participate in the Basell acquisition," Dr Sen said.
He added that West Bengal Government still wants to get
out of Haldia Petrochemicals and according to the existing
terms and conditions, it had offered its shares to TCG.
On the stake transfer, he said that things are yet to
fall into shape.
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Voltas
FY05 net up 29.16 per cent
Mumbai:
The Board of Directors of Voltas Limited, a Tata Enterprise
announced on Monday the audited financial results including
the consolidated financial results and segment report
for the year ended March 31, 2005.
For FY05, the company reported net profit after tax of
Rs504.1mn compared to Rs390.3mn, an increase of 29.16
% over the previous year. Net sales increased by 8.38
% to Rs14.41bn as compared to Rs13.29bn. Operating profit
increased by 42.29 % to Rs526.2mn as against Rs369.8mn.
For the quarter ended March 2005, the Company registered
an 18.23 % increase in net profit after tax to Rs228.3mn
as against Rs193.1mn in the corresponding quarter of the
previous year.
Operating profit (profit before tax & exceptional
items) increased by 28.03% to Rs219.7mn as against Rs171.6mn
over the corresponding quarter of the previous year.
Net sales for the quarter rose by 22.66 % to Rs5bn as
against Rs4.07bn in the corresponding quarter of the previous
year. The Company's performance was driven by strong growth
in electro-mechanical project and services segment (42.56%);
the engineering agency and services segment (35.15%) and
others (31.85%).
The Board has also recommended an increased dividend of
50% for the year ended 31st March 2005 (previous year
30%) including special golden jubilee dividend of 15%,
on the equity shares of Rs 10 each of the Company.
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