Oil India Q3 net doubles on tax gains

But for this one-time gain, the profit should have been lower as the company realised a lower price for oil and gas it sold in the quarter. It got $44.09 for every barrel of crude oil in the third quarter of the current fiscal as compared to $63.27 a barrel realisation a year back.

Gas price was also lower at $1.79 per million British thermal unit (mmbtu). In the nine months ended December 31, net profit was 46 percent lower at Rs 894.03 crore.

”Reduction in average crude oil price for the 9-month 2020-21 to $38.98 per barrel from $63.62/bbl for 9M 2019-20. The decrease in price has led to decrease in turnover by Rs 2,838 crore and profitability by Rs 1416 crore during 9M 2020-21,” the statement said.

Similarly, a reduction in average natural gas price to $2.19 per mmbtu from $3.54 led to decrease in turnover by Rs 625 crore and profitability by Rs 425 crore, it said.

Also, the company booked Rs 378.93 crore as the cost of controlling the blowout at Baghjan oilfield in the Tinsukia district of Assam. Crude oil production for Q3 remained flat at 0.748 million tonnes while natural gas output was marginally lower at 673 million standard cubic metres as compared to 697 mmscm.

OIL declared an interim dividend of Rs 3.50 per share for FY 2020-21.