Oil India reports highest quarterly net of Rs 1,720 cr despite windfall tax

State-owned Oil India Ltd (OIL) on Thursday reported its highest quarterly net profit of Rs 1,720 crore for July-September despite a newly introduced windfall profit tax taking away some of the gains accruing from a surge in oil prices.

Net profit of Rs 1,720.53 crore in the second quarter of current fiscal compared with Rs 504.46 crore net profit a year back, the company said in a statement.

Turnover jumped to Rs 6,670.81 crore from Rs 3,678.76 crore in July-September 2021 on the back of higher oil and gas prices.

The company, which is the nation's second largest state oil producer, earned an average of USD 100.59 for every barrel of oil it produced and sold in Q2 as compared to USD 71.35 per barrel earnings last year.

Oil production was almost unchanged at 0.79 million tonnes while gas output inched up marginally to 0.823 billion cubic metres.

The record profit was despite the government levying a new tax from July on domestically-produced crude oil to take away some of the gains following a surge in international oil prices.

Domestically produced crude oil is sold at a price benchmarked to global rates.