OIL net drops 11 pc on lower oil prices

State-owned Oil India Ltd (OIL) on Friday reported an 11 per cent drop in its June quarter net profit as it faced double whammy of falling oil prices and a dip in production.

Net profit in April-June at Rs 624.80 crore was 11.15 per cent lower than Rs 703.22 crore net profit reported in the same period last year, the company said in a statement.

Turnover too was lower at Rs 3,373.36 crore as compared to Rs 3,390.46 crore in the first quarter of the previous year.

OIL got USD 66.33 for every barrel of crude oil it produced and sold in April-June 2019. This was lower than USD 72 per barrel price realisation a year back.

Also, oil production declined to 0.813 million tonnes from 0.844 million tonnes.

Natural gas output however improved to 0.712 billion cubic metes in April-June as against 0.696 bcm last year.

"Average natural gas price realisation during Q1 FY 2019-20 improved to USD 3.69 per million British thermal unit as compared to USD 3.06 per mmBtu in Q1 FY 2018-19," it added.