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Oil India Ltd has reported a 30.54 per cent increase in net profit for the fourth quarter of FY 11 at Rs 562.61 crore against Rs 430.99 crore in FY 10.
Higher realisation of crude oil and gas prices and increase in transportation tariff are the main reasons for this increase, despite the company shouldering higher fuel subsidy burden, Mr N.M. Borah, Chairman and Managing Director, OIL, said.
“Had it not been for the subsidy burden, the company's net profit for the quarter would have been higher by Rs 900.69 crore and for the fiscal by Rs 1,848.18 crore,” he said.
The company's turnover for the quarter was up 10.20 per cent.
For the fiscal 2011, the company reported a 10.62 per cent increase in net profit, and 5.03 per cent increase in turnover.
OIL had shared subsidy burden of Rs 3,293.08 crore in FY 11, against Rs 1,548.81 crore in the previous year.
The company's net realisation on every barrel of crude oil sold for FY 11 was $58.54 ($56.21). The company also benefited because of increase in APM gas price and increase in gas subsidy for selling gas at a discounted price in North East.
OIL's natural gas sales increased to Rs 852.69 crore in FY 11 (Rs 485.68 crore in FY 10). From natural gas subsidy, it earned Rs 293.28 crore in FY 11 (Rs 156.31 crore in FY 10).
OIL also benefited from the revised transportation tariff for pumping of Ravva crude oil from Barauni to BRPL at Bongaingaon. The tariff revision resulted in additional annual income of Rs 76 crore (2008-09 to 2010-11).
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