India’s major crude oil producer, Oil and Natural Gas Corporation (ONGC), at its annual general meeting (AGM) held on Sep. 19, 2008, has announced highest ever dividend by an Indian company at Rs 68.44 billion excluding Rs 11.63 billion payable as tax.

The company’s consolidated sales for FY 07-08 stood at Rs 1,037.17 billion, whereas standalone sales were at Rs 167.02 billion as compared to 156.43 billion during the corresponding period of the last year.

The company’s net profit for the same period increased 7% at Rs 167.02 billion up as against 156.43 billion in the previous year.

In AGM Speech to shareholders, Mr. R S Sharma, Chairman and Managing Director of ONGC said, “Your company has ambitious growth plan. For prudent fiscal management, it is desirable to retain substantial fund for investment and growth perspectives to address the aspiration of shareholders.”

Moreover, ONGC has decided to invest around Rs 19,338 crore in oil and gas exploration during the existing fiscal (2008-09), which is around 10% more than its investment of Rs 17,651 crore during the previous year. 

The company said that improving the reserve replacement ratio by intensifying exploratory efforts is the company’s first priority.

On Friday (Sep 18), the company’s shares gained Rs 72.95 to settle at Rs 1,072 on the Bombay Stock Exchange (BSE). The total volume of shares traded was 304,009 at the BSE.