New Delhi: State-owned Oil India Ltd (OIL) on Tuesday reported a 34.5 percent drop in its June quarter net profit after net realisation fell due to higher fuel subsidy outgo.
OIL, the nation's second largest state explorer, posted a net profit of Rs 609.08 crore, or Rs 10.13 per share, in April-June quarter as compared to Rs 929.93 crore, or Rs 15.47 per share, in the same period a year ago, the company said in a statement.
The company shelled out Rs 1,982.06 crore to make up for a part of the losses state retailers suffer on selling diesel, cooking gas (LPG) and kerosene at government controlled rates.
The subsidy outgo was lower than Rs 2,015.52 crore a year ago but the net realisation for the company at USD 45.88 per barrel was lower than USD 53.78 in first quarter last fiscal.
OIL and upstream firms extend the subsidy support by selling crude oil at a discount.
The company billed USD 101.88 per barrel but after extending USD 56 per barrel discount, got USD 45.88. Last year, the discount was the same but the gross billing was USD 109.78 and so the net realisation was USD 53.78 per barrel.
Also, oil production fell marginally to 0.903 million tonnes from 0.946 million tonnes while gas output at 0.657 billion cubic metres (bcm) was marginally higher than 0.626 bcm production last year.
"During Q1, rupee has depreciated against USD by 3.38 percent - from Rs 54.10 in the Q1 FY 13 to Rs 55.93 in Q1 FY14. This has resulted in additional revenue of Rs 61.27 crore and Rs 12.72 crore in respect of crude oil and natural gas respectively," the statement said.
Turnover dipped 14 percent to Rs 2,097.77 crore. "The decrease in turnover is mainly because of lower net crude oil price realisation to the extent of Rs 325.91 crore," it said.
First Published: Tuesday, August 13, 2013, 21:44