News: ONGC ranked 402 in 2006 Fortune 500 list

(PTI 17/07/2006) New Delhi - Oil and Natural Gas Corp, the country's biggest oil producer, has been ranked 402nd in the 2006 Fortune Global 500 listing, up from last year's 454.

The ONGC's higher ranking is all the more commendable as the turnover of the upstream company has been under pressure due to heavy subsidy payout for the last three years, the oil giant said in a statement.

The ONGC notched up 52 points from its last year's listing of 454 as the turnover considered by Fortune rose 20.8 per cent at $16,609 million from the previous assessment.

On the profit platform, with a figure of $3,481.7 million, up nine per cent, ONGC leads all Indian firms in the new list with its ranking of 115.

The new list in the top 10 category has highlighted the growth of the global oil industry. US major Exxon Mobil has displaced Wal-Mart, the Fortune topper for the past few years.

The consistent high crude prices have forced the US retail major slip to the second spot, paving the way for the US oil giant.

While global energy giants are reaping huge benefits with soaring crude oil prices pushing their share prices as well as profits to new heights, the ONGC does not share the same fortune, due to the huge subsidy burden on its shoulders.

According to estimates, the ONGC will have to share the maximum burden of Rs 4,948 crore in a total upstream assistance of Rs 5,799 crore for the first quarter this fiscal.

The petroleum ministry has estimated the under-recoveries of OMCs on sale of petrol, diesel, LPG and kerosene for the first quarter at Rs 17,397.94 crore.