Oil India reports higher Q3 profit over significant tax reversal

Company board declares 35 per cent dividend

Oil India (OIL) on Thursday reported Rs 889.69 crore consolidated profit for the third quarter of financial year 2020-2021 (Q3FY21), up 25 per cent higher from Rs 709.39 crore bottom line reported by the company in the same quarter a year earlier. Profit improved on the company getting a Rs 1,158.54 crore direct tax reversal.

The OIL Board declared an interim dividend of Rs 3.50 per share (of face value Rs 10) on Thursday.

The higher profit is despite a fall in operational performance with total income falling 27 per cent to Rs 2,246.2 crore for the quarter under review. The income was Rs 3,093.72 crore in the comparable quarter of the previous financial year.

OIL said that crude oil price realisation during the quarter under review stood at $ 44.09 a barrel, down from $ 63.27 a barrel in the same period of 2019.

The higher profit in the quarter is because of a significant tax reversal. OIL said that it settled all its pending income tax disputes from accounting year 2003-2004 to 2016-17 under the Vivad Se Vishwas Scheme.

“Based on the final settlement orders received from the designated authority under the scheme for all the above years, the company has recognised an amount of Rs 1,158.54 crore (credit) in the statement of consolidated financial results for the quarter and nine months ended December 31, 2020,” OIL said.

Crude oil production for Q3FY21 has remained flat at 0.748 million tonne (MMT) as compared to 0.747 MMT during Q3FY20.
Meanwhile, Natural gas production for the quarter has marginally reduced to 673 million standard cubic meters (MMSCM) as against 697 MMSCM in the same period a year ago.

On a standalone basis, OIL reported Rs 2,497.24 crore in total income and Rs 903.69 crore profit for the quarter ended December 31, 2020.