Oil India Q4 profit dips 96% over royalty payments, lower gas price
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New Delhi: State-owned Oil India Ltd (OIL) on Monday reported a 96% drop in its March quarter net profit after it brought on books the additional royalties paid to Assam and Arunachal Pradesh.
Net profit in the January-March quarter of last fiscal was Rs19.31 crore (Rs0.25 per share), 96% lower than Rs470.13 crore (Rs5.88 a share) in the same period for 2015- 16, OIL chairman and managing director Utpal Bora said. “The profit was down because of two counts. One, Rs1,152 crore of royalty payments to Assam and Arunachal Pradesh following court directives were accounted in the quarter... Secondly, reduction in natural gas price reduced our revenues,” he said. But for the royalty payment, OIL net profit should have been Rs751.14 crore, he said.
“The profits dipped despite clocking highest-ever gas production of 2.93 billion cubic metres,” Bora said, adding that crude oil production rose 1% and gas 3.5%. Turnover rose to Rs3,308.98 crore in the fourth quarter of 2016-17, from Rs2,445.01 crore in the same quarter of the previous fiscal. OIL got $52.50 for every barrel of crude oil it produced, up from $32.46 a barrel in the fourth quarter of 2015-16. For the full 2016-17 fiscal, OIL reported a net profit of Rs1,548.68 crore, down 32% from Rs2,301.67 crore of previous financial year.
The net profit should have been Rs2,379 crore if the royalty expense had not been accounted for, Bora said. The company will invest Rs4,290 crore in current fiscal as against a capex of Rs4,336 crore in the previous year.