Oct 30, 2009, 02.06 PM IST | Source: CNBC-TV18

Oil India gross realisation at $62.6/bbl

Post result declaration, the companys Chairman and Managing Director, NM Borah and Director of Finance, TK Ananth Kumar spoke exclusively to CNBC-TV18 about the results and their outlook for the company.

NM Borah, Chairman and Managing Director, Oil India

Oil India recorded a 0.84% rise in its net profit to Rs 722 crore as against Rs 716 crore last year. The company announced it's second quarter results for the financial year 2010 (Q2FY10) today. Its net sales declined 2% to Rs 2,100 crore from Rs 2,143 crore on year-on-year (YoY) basis.

Post result declaration, the companys Chairman and Managing Director, NM Borah and Director of Finance, TK Ananth Kumar spoke exclusively to CNBC-TV18 about the results and their outlook for the company.

Below is a verbatim transcript:

Q: If you could start by outlining, what kind of realisations you had in this current quarter, given how crude prices behaved?

Borah: Before you talk about realizations maybe we should have a very quick look at the production volumes which is linked to that. In the year 2008-09, we had been in a position to increase our crude production by as much as about 12% vis--vis the previous year. So this year we started of with a relatively high base. But I am very happy to state that compared to half year last year 2008-09, the current half year we have been in a position to sustain the increasing rate of production. As a matter of fact, our crude production during this current half year has gone up by about 2.35% and in terms of natural gas production the production has gone up by about 4.5%.

In terms of crude prices, the gross last year was USD 117.74 per barrel whereas the current half the gross realizations has been to the tune of USD 62.6 per barrel, net of subsidy the number should be that the current half the number of the USD 56.32 per barrel whereas the corresponding number during the last half year net of subsidy was USD 783.51 per barrel.

Q: What was the total subsidy outgo in the current quarter and what do you expect for the second half in terms of subsidy payouts?

Borah: The think the first half of this year, the total subsidy on account of auto fuels to the upstream companies that is ONGC , GAIL and ourselves has been to the tune of about Rs 4,000 crore out of which close to about 10%, which is Rs 411 crore to be prcised, has been on account of Oil India.

Q: One clarification on what you see the full year subsidy out go has because this quarter subsidy out go has actually been higher than what the market was estimating?

Borah: I really wont know and I dont think would like to hazard agues on that. As far as we are concerned, I have no hesitation in making a point to you that we certainly have made a representation to the Ministry of Petroleum saying that whatever we did to the auto fuel company and the subsidy, we wish that there were some of more equitable distribution amongst all the stake holders.

Q: How aggressively did Oil India bid in NELP VIII and how many fails did you bid for?

Kumar: We bid for 14 blocks.

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