Oil India Ltd has reported a 5.3 per cent drop in its second quarter net profit on lower crude oil production and higher fuel subsidy.
Net profit in July-September quarter dipped to Rs 903.64 crore, or Rs 15.03 per share, from Rs 954.57 crore, or Rs 15.88 a share, the company said in a statement here.
Profits fell as it shelled out 7.5 per cent more fuel subsidy at Rs 2,233.70 crore in the quarter under review.
The subsidy outgo lowered net profit by Rs 1,265.68 crore, OIL said. OIL’s net realisation on crude was $52.33 per barrel after it gave a discount of $56 to the downstream refiners like IOC. The net realisation was marginally lower than $52.63 a barrel it got in Q2 of last fiscal.
Crude oil production slipped 4.6 per cent to 0.91 6MT while natural production at 0.666 billion cubic metres was lower than 0.69 bcm in July-September of 2012.
“The decrease in crude oil production and sales quantity is due to certain bandhs and blockades (in North East) which affected operations in Q2 FY14. The crude oil loss due to such blockades was 3,456 tonnes during Q2,” the statement said.