Oil India Ltd, the nation's second biggest state-owned explorer, on Wednesday reported a 33 per cent drop in its September quarter net profit as crude oil production fell and prices slumped. Net profit in July-September at Rs 608.33 crore (Rs 10.12 per share) was 32.68 per cent lower than the Rs 903.64 crore (Rs 15.03 per share) net profit in the same period last fiscal.
‘Due to lower international crude oil price, the gross crude oil price realisation for Q2 is lower by 6.54 per cent to $101.25 per barrel, as compared to $108.33 in Q2 FY2013-14. The net realisation is $45.25 per barrel as compared to $52.33,’ it said.
OIL, which along with other upstream oil producer ONGC makes good a portion of losses that fuel retailers incur on selling diesel and cooking fuel at government controlled rates, said its subsidy outgo in Q2 was marginally lower at Rs 3,394.16 crore as against Rs 3,486 crore a year ago.
Its crude oil production fell over 4 per cent to 0.879 million tons but natural gas output was 4.2 per cent higher at 0.694 billion cubic meters. Sales fell 17.5 per cent to Rs 2.622.26 crore.
OIL said it has received a notice of demand for Rs 1,324.79 crore from Assam VAT Authority claiming tax on the fuel subsidy paid to fuel retailers and on transportation charges on crude oil. ‘The company is contesting the demand and filed a writ petition before the High Court and considered it not a liability.’ The subsidy payout dented its revenue by Rs 2,238.30 crore, OIL said.
‘Due to lower international crude oil price, the gross crude oil price realisation for Q2 is lower by 6.54 per cent to $101.25 per barrel, as compared to $108.33 in Q2 FY2013-14. The net realisation is $45.25 per barrel as compared to $52.33,’ it said.
OIL, which along with other upstream oil producer ONGC makes good a portion of losses that fuel retailers incur on selling diesel and cooking fuel at government controlled rates, said its subsidy outgo in Q2 was marginally lower at Rs 3,394.16 crore as against Rs 3,486 crore a year ago.
Its crude oil production fell over 4 per cent to 0.879 million tons but natural gas output was 4.2 per cent higher at 0.694 billion cubic meters. Sales fell 17.5 per cent to Rs 2.622.26 crore.
OIL said it has received a notice of demand for Rs 1,324.79 crore from Assam VAT Authority claiming tax on the fuel subsidy paid to fuel retailers and on transportation charges on crude oil. ‘The company is contesting the demand and filed a writ petition before the High Court and considered it not a liability.’ The subsidy payout dented its revenue by Rs 2,238.30 crore, OIL said.