New Delhi: Oil India Ltd, the nation's second biggest state-owned explorer, Wednesday reported a 33 percent drop in its September quarter net profit as crude oil production fell and prices slumped.
Net profit in July-September at Rs 608.33 crore, or Rs 10.12 per share, was 32.68 percent lower than Rs 903.64 crore, or Rs 15.03 per share, net profit in the same period last fiscal, the company said in a statement here.
"Due to lower international crude oil price, the gross crude oil price realisation for Q2 is lower by 6.54 percent to USD 101.25 per barrel, as compared to USD 108.33 in Q2 FY2013-14. The net realisation is USD 45.25 per barrel as compared to USD 52.33," it said.
OIL, which along with other upstream oil producer ONGC makes good a portion of losses that fuel retailers incur on selling diesel and cooking fuel at government controlled rates, said its subsidy outgo in Q2 was marginally lower at Rs 3,394.16 crore as against Rs 3,486 crore a year ago.
Its crude oil production fell over 4 percent to 0.879 million tons but natural gas output was 4.2 percent higher at 0.694 billion cubic meters.
Sales fell 17.5 percent to Rs 2.622.26 crore.
The company said it has received a notice of demand for Rs 1,324.79 crore from Assam Value Added Tax Authority claiming tax on the fuel subsidy paid to fuel retailers and on transportation charges on crude oil. "Company is contesting the demand and filed a writ petition before the High Court and considered it not a liability."
The subsidy payout dented its revenue by Rs 2,238.30 crore, OIL said.
