New Delhi: State-owned Oil India Ltd, or OIL, said net profit rose 20.76% in the fiscal year ended March on account of a production increase, a rise in the realization price and forex earnings.
Net profit for the year rose to Rs2,610.52 crore on a 9.17% increase in revenue to Rs7,905.55 crore in the year, said OIL, which declared a dividend payout of 340%. OIL had already announced an interim dividend of 180%. The explorer’s share of the subsidy on fuel sales fell to Rs1,548.81 crore.
For the three months ended 31 March, net profit rose 509.17% to Rs430.99 crore on a 34.02% increase in revenue to Rs1,832.14 crore. The company’s crude oil production increased 4.57% to 0.892 million tonnes in the fourth quarter.
“The results have been exceptional,” said N.M. Borah, chairman and managing director, OIL.
OIL produced 3.611 million tonnes of crude in the year, a 3.32% increase over fiscal 2008-09. It also produced 2.415 billion cu. m of gas during the period, 6.43% more than last fiscal.
The company expects net sales of around Rs500 crore in the current financial year on account of the recent increase in the price of subsidized gas sold by state-owned firms.
The company, which has earmarked capital expenditure of Rs2,300 crore for 2009-10, is still hopeful of acquiring Syria-focused oil explorer Gulfsands Petroleum Plc after its earlier offer was rejected.
“It is not a closed chapter,” Borah said, declining to comment further.
OIL’s stock rose 0.98% to Rs1,241.15 on the Bombay Stock Exchange on Wednesday., while the benchmark Sensex closed at 16,387.84 points. The results were announced after trading hours.