Comments
Lower prices of crude oil have led to a 33.4 per cent drop in Oil India Ltd’s net profit for the first quarter of fiscal 2016-17. The company’s net profit for the quarter stood at ₹ 494.41 crore as compared to ₹ 743.21 crore in the same quarter last year.
During the quarter the company’s total income fell 22 per cent to ₹ 2,460.85 crore as compared to ₹ 3,164.12 crore in the same quarter last year.
As a result of the lower prices, the company’s net realisation for crude oil stood at $ 43.09 per barrel as compared to $ 57.42 per barrel in the same quarter last year. This is despite the company having to sell crude oil with a discount of $ 4.43 per barrel in the same quarter last year as compared to no discount in the quarter under review.
Typically, public sector oil exploration and production companies sell crude oil at a discount to public sector oil marketing companies to compensate for sensitive refined products like kerosene and domestic LPG being sold at less than market rates.
During the quarter Oil India’s total oil and oil equivalent production rose marginally to 1.391 million tonne of oil equivalent.
On Tuesday, Oil India’s shares closed 0.93 per cent higher on the BSE at ₹ 389.25.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.