Oil India April-June Profit Drops 45% on Lower Crude Realisation

State-owned Oil India Ltd. reported weak earnings for the June quarter, with both profit and revenue declining on year due to a sharp drop in crude oil price realisation, which fell 22% on year.

The company’s standalone net profit fell 44.6% on year to ₹8.13 billion, while revenue dropped 14.2% to ₹50.12 billion. Excise duty payments for the quarter stood at ₹0.8 million, unchanged from the March quarter but sharply lower than ₹5.08 billion a year ago.

Revenue from crude oil sales fell to ₹33.12 billion from ₹42.08 billion a year earlier, while natural gas sales rose marginally to ₹14.69 billion from ₹14.22 billion. These segments accounted for nearly 96% of total revenue. Operating margin slipped to 21.44% from 34.42% a year earlier.

Total expenses rose 1.6% on year to ₹40.91 billion, led by a 165% surge in “other expenses” to ₹11.35 billion.
Oil and gas production from mature fields in the Northeast was stable at 1.680 million tonnes of oil equivalent in April–June, compared with 1.689 million tonnes a year ago.

The company reported a hydrocarbon discovery at the Namrup-Borhat OALP block and started gas production from the Bakhritibba DSF block in Rajasthan’s Jaisalmer district. Its subsidiary Numaligarh Refinery Ltd. processed 799,000 tonnes of crude in the quarter, up from 764,000 tonnes a year earlier.