Oil India continues to power our drive for energy independence

State-owned Oil India Ltd (OIL) on Wednesday reported 9 per cent drop in its June quarter net profit on higher dry well write-off and provisioning for expenses.

Net profit in April-June quarter fell to Rs 775.42 crore, or Rs 12.90 per share, from Rs 851.87 crore, or Rs 14.17 a share, in the same period a year ago, OIL chairman U P Singh said.

The decline was <g data-gr-id="29">primarily</g> because of other expenses rising to Rs 574 crore in the first quarter of current fiscal as compared to Rs 391 crore a year ago.

This included <g data-gr-id="35">rise</g> in dry <g data-gr-id="34">well</g> expense from Rs 9 crore to Rs 57 crore and provisioning for unfinished work commitments rising to Rs 128.31 crore from Rs 40.57 crore. The dip was despite the firm’s fuel subsidy burden declining to Rs 167.43 crore from Rs 1,846.55 crore in the first quarter of previous fiscal, he said.

OIL got a gross price of $61.85 per barrel on <g data-gr-id="32">sale</g> of crude oil and after accounting for fuel subsidy discounts, the net realisation was $57.42 a barrel. This was better than <g data-gr-id="31">net</g> realisation of $52.35 per barrel in April-June last year after paying $56 in subsidy discounts.

Crude oil production was almost flat at 0.84 million tonnes, so was <g data-gr-id="26">natural</g> gas at 0.642 billion cubic meters. Singh said there was a foreign exchange gain of Rs 167 crore. Turnover rose to Rs 3,159.87 crore as against Rs 2,931.52 crore. Meanwhile, OIL shares closed 0.52 per cent down at Rs 449.05 apiece on the BSE on Wednesday.