Oil India net profits suffer amidst a lower price oil regime

Mired in a lower oil price regime, state-owned explorer Oil India’s standalone net profit declined about 34% on a year-over-year basis in the third quarter of the ongoing financial year.

On a standalone basis, the explorer posted a net profit of ₹808 crore in the December-end quarter against ₹1,222 crore in the comparable period last year.

Its crude price realisation, which is the primary indicator of profitability for an explorer-producer, declined sharply by about 15% on a year-over-year basis to $62.84 for every barrel during the reported period amidst the lower oil price regime.

Revenue from operations decelerated about 6.2% on a year-over-year basis to ₹4,916.10 crore.

As for production of oil and gas, during the quarter, the company produced 1.659 million metric tonnes of oil equivalent (MMTOE) from their matured and old oilfields. This was marginally lower than 1.697 MMTOE produced during the comparable period last year.

Numaligarh refinery more than doubles profit

While the explorer suffered amidst the lower oil price regime, OIL’s refinery subsidiary, Numaligarh Refinery Ltd, more than doubled their net profit to ₹867 crore during the same period from ₹385 crore in the comparable period last year. The gross refining margin of the Navaratna stood at $16.27 for every barrel.

OIL announces dividend

Alongside their results, the explorer-producer also announced an interim dividend of ₹7 per fully paid equity share.