OIL Q2 net profit up 11% on lower subsidy sharing

Oil India Ltd (OIL), India's state-owned petroleum explorer, has posted an 11% rise in net profit for the quarter ended September on the back of lower sharing of under-recovery burden of Oil marketing Companies (OMCs). The company posted a net profit of Rs 674 crore during the quarter as compared to Rs 608.33 crore in the corresponding quarter last fiscal.

The company's gross crude oil price realization slumped 52% to $48.72 per barrel in the September quarter from $101.25 per barrel in the corresponding quarter due to the sharp fall in the global crude rates. "However, due to the reduction in subsidy payout to OMCs to $2.29 per barrel in the second quarter as compared to $60.34 per barrel in the corresponding quarter, the net realization was higher at $46.43 per barrel as compare to $40.91 per barrel in second quarter last fiscal," the company said in a statement.

Total income of the company during the three months ended September 2015 rose 13% to Rs 2,956 crore as compared to Rs 2,622 crore in the same quarter last financial year (2014-15). "The increase is due to the 13.5% increase in net crude oil price realization," the company said.

OIL's total crude oil production during the second quarter dipped 7% to 0.818 million tonne (MT) from 0.879 MT in the same quarter last fiscal. However, natural gas production rose marginally to 702 million standard cubic meter (mmscm) in the September quarter as compared to 694 mmscm in the corresponding quarter.

The company's share price at the Bombay Stock Exchange (BSE) today closed at Rs 398.70, down 0.69% as compared to previous close.