OIL posts over 5 percent drop in Q2 net profit

State-run explorer Oil India (OIL) Tuesday posted a 5.34 percent drop in net profit for the second quarter ending September at Rs.903.64 crore, as compared to Rs.954.57 crore in the same period of the previous fiscal, owing to lower production and sales.

The turnover of the company during the quarter increased by 12.58 percent to Rs.2,836.40 crore as compared to Rs.2,519.37 crore during the corresponding period last year,

Crude oil sales during the quarter was 0.926 million tonnes (MT) as compared to sales of 0.943 MT in the same quarter of fiscal 2012-13.

Natural gas sales in the quarter were to the tune of 530 million metric standard cubic metres as compared to 548 MMSCM during the second quarter of the last fiscal.

"The decrease in crude oil production and sales quantity is due to certain bandhs and blockades which affected operations in Q2 FY14. The crude oil loss due to such Bandhs and Blockades was 3,456 MT during Q2," OIL said in a statement.

OIL also announced its first discovery in an overseas venture as an operator, in Gabon (Africa), of a well producing oil and gas.

It has also made two discoveries in Assam during the quarter.

OIL said it "has been rated 'Baa2' by Moody's, which is higher than sovereign rating".

OIL stocks closed Tuesday at Rs. 461.00 a share, up 1.95 points, or 0.42 percent, over its previous close on the Bombay Stock Exchange.