You are here: Home » Companies » Results
Business Standard

Oil India Q2 net profit drops 42% to Rs 381 crore on blowout expense

Out of Rs 227.51 crore, Rs 134.12 crore has been booked during September quarter.

Topics
OIL India | Oil India results | Oil producers

Press Trust of India 

Oil India, gas blowout
OIL said a blowout occurred in a producing well (Baghjan#5) in Tinsukia district of Assam on May 27 andthe well caught fire on June 9.

Ltd, the nation's second-biggest state oil producer, on Monday reported a 42 per cent drop in September quarter net profit largely on account of lower oil prices and one-time expense it incurred on controlling a blowout in Assam.

Net profit in July-September at Rs 381.75 crore was lower than Rs 661.53 crore net profit in the same period a year back, the company said in a stock exchange filing.

OIL said a blowout occurred in a producing well (Baghjan#5) in Tinsukia district of Assam on May 27 andthe well caught fire on June 9.

"To control the blowout, all necessary remedial actions (have) been undertaken by the company," it said adding the total losses/damages arising out of the blowout can be assessed on successful control of the blowout.

The company is currently trying to control the blowout.

"However, as on September 30, 2020 an amount of Rs 227.51 crore has been incurred to control the blowout and the same has been shown as an exceptional item in the statement of profit and loss," it said.

Out of Rs 227.51 crore, Rs 134.12 crore has been booked during September quarter.

Turnover fell 32 per cent to Rs 2,175.87 crore in the second quarter of the current fiscal.

A fall in international oil prices led to revenue from the sale of crude oil slump by 32 per cent and segment pre-tax profit more than halved to Rs 432.27 crore.

Lower natural gas prices also saw revenues from its sales slump 41 per cent and pre-tax profit drop to Rs 51.70 crore from Rs 176.93 crore in July-September 2019.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, November 09 2020. 19:48 IST
RECOMMENDED FOR YOU
.