Oil India gains after entering into agreement

Oil India rose 2.41% to Rs 338.25 at 11:12 IST on BSE after the company entered into an agreement with Government of Assam and Assam Petro-Chemicals for methanol and formaldehyde project.

The announcement was made after market hours yesterday, 21 March 2018.

Meanwhile, the S&P BSE Sensex was up 82.10 points, or 0.25% to 33,218.28

On the BSE, 87,000 shares were traded in the counter so far compared with average daily volumes of 42,000 shares in the past two weeks. The stock had hit a high of Rs 342 and a low of Rs 328.10 so far during the day. The stock hit a 52-week high of Rs 388.85 on 12 January 2018. The stock hit a 52-week low of Rs 258 on 3 July 2017.

Oil India said that Assam Petro-Chemicals (APL), a company having its registered office at Guwahati, Assam and engaged in the business of manufacture and sale of methanol and formalin is in the process of implementing the 500 TPD (tonne per day) methanol and 200 TPD formaldehyde project.

A memorandum of understanding (MoU) was signed between Government of Assam, Oil India and APL which envisages setting up of a 500 TPD methanol plant at Namrup, Assam and a 200 TPD formalin plant at Boitamari in Bongaigaon district of Assam. The total cost of this project will be Rs 1337 crore. Oil India's contribution will be Rs 242 crore for 49% equity participation in APL.

Net profit of Oil India rose 55.10% to Rs 705.22 crore on 16.62% rise in net sales to Rs 2852.55 crore in Q3 December 2017 over Q3 December 2016.

Oil India is engaged in the business of exploration, development and production of crude oil and natural gas, transportation of crude oil and production of LPG. It also provides various E&P related services and holds 26% equity in Numaligarh Refinery.

The Government of India held 66.13% stake in Oil India as per the shareholding pattern as on 31 December 2017.

Powered by Capital Market - Live News