By TN Ashok / Economics Editor
New Delhi, August 12 : Oil India, India’s 2nd largest state owned explorer, registered a net profit of Rs 775 crore for the quarter ended June in FY 2015-16 ( Q1 April to June) mainly towed by a sharp decline in crude oil prices globally even as subsidy burden was low.
Total income from operations grew by 8.8 percent to Rs 2,882.6 crore compared to Rs 2,650 crore in the same quarter last fiscal. Revenue from crude oil increased 7.7 percent year-on-year to Rs 2,195.4 crore with EBIT (earnings before interest and tax) down 5.7 percent while natural gas revenue jumped 17.2 percent to Rs 541.5 crore with EBIT rising 2.6 percent.
OIL Chairman and MD, U P Singh, who is also additional secretary in petroleum ministry told newsmen today that OIL’s revenue declined by Rs 167 crore due to sharing of under recoveries of downstream oil PSUs on sale of diesel, LPG and PDS SKO.
It was quite lower compared to Rs 1,846.55 crore shared in the year-ago period. Operating profit (earnings before interest, tax, depreciation and amortisation) fell 2.3 percent on yearly basis to Rs 1,217 crore and margin declined 480 basis points to 42.2 percent in Q1, impacted by lower realisation due to fall in crude oil prices. Shares of Oil India closed at Rs 452.10, up Rs 0.70, or 0.16 percent on the BSE.
Talking about targets and realisation, Mr Singh said that durng the first quarter of FY 16, OILs crude oil production targets was 877 TMT but actual realisation was 842 TMT which was 96.05% of the target.
ON the natural gas front, the first quarter production target was 689 MMSCM and actual roduction was 642 MMSCM which was 93.04% of the target.
Crude oil sales in Q1 FY 16 target was 866 MMT, and actual sales was 845 TMT which is 97% of the target. Sale of natural gas target for Q1 FY 16 567 MMSCM and actual sales were 502 MMSCM which is 88.48% of the target.
OIL gained because of the sharp fall in international price of cfrude , the gross average crude oil rices was lower by 42.92% to US$ 61.85/bbl in Q1 FY 16 compared to US$ 108.35 /bbl in Q1 last year.
However, on account of lower subsidy burden due to deregulation of HSD and MS price and implementation of DBTL , the average net crude oil price realization was 9.68% higher at US$ 57.42/bbl in Q1 FY16 as compared to US$ 52.35/bbl in Q1 last year.
Also, further depreciation of INR against USD also helped in higher net realization Rupee terms. The net reallisation in Rupee terms has increased by 16.42% to Rs 3,644.45/bbl as compared to RS 3,130/bbl . The average Rupee depreciated by 6.14% to Rs 63.47 in Q1 FY16 from Rs 59.80 in Q1 FY 15.
Turnover during Q1 FY16 increased by 6.25% to Rs 2,882.64 crore compared to Rs 2,712.99 crore in Q4 FY15 . Turnover is also higher by 8.79% as compared to Rs 2,649 crore in Q1
