Net profit in January-March at Rs 925.64 crore compares with a loss of Rs 208.54 crore in the same period a year back, the company said in a statement.
State-owned Oil India Ltd (OIL) has reported a net profit of Rs 925.64 crore for the March quarter as opposed to a loss last year as lower corporate tax offset a dip in oil and gas prices. Net profit in January-March at Rs 925.64 crore compares with a loss of Rs 208.54 crore in the same period a year back, the company said in a statement.
The company said it opted for the new concessional tax regime, paying an effective tax rate of 25.17 per cent in lieu of giving up exemptions. Current corporate tax rate is 35 per cent. “This has resulted in reversal of deferred tax liability of Rs 821.01 crore during 2019-20,” the statement said. The lower tax rate offset drop in revenue from slump in oil and gas rates.
“Crude oil price realisation during Q4 (January-March) of FY20 and FY 2019-20 got adversely affected due to fall in international crude oil prices because of Covid-19 and collapse in understanding between OPEC and Russia on continued production cuts,” it said.
Average crude oil price realisation during January-March (Q4 FY 2019-20) was USD 52.18 per barrel, which was lower by 15.51 per cent as compared to a price realisation of USD 61.76 a barrel during Q4 FY2018-19. Total revenue was up marginally to Rs 3,583.72 crore in Q4 from Rs 3,583.72 crore a year back.
For the full 2019-20 fiscal, the company’s net profit was almost unchanged at Rs 2,584.06 crore on a revenue of Rs 13,648.71 crore. Average crude oil price realisation was lower by 11.31 per cent to USD 60.75 per barrel in 2019-20, as compared to USD 68.50 during 2018-19.
Average natural gas price realisation during 2019-20 improved to USD 3.46 per million British thermal unit as compared to USD 3.21 during the preceding fiscal. OIL said crude oil production dipped 5.7 per cent to 3.134 million tonnes in FY20. However, production for Q4 was 1.48 per cent higher at 0.758 million tonnes as compared to 0.747 million tonnes in Q3 2019-20.
Natural gas production during FY 2019-20 was marginally lower at 2,801 million standard cubic meters as compared to 2,865 mmscm during 2018-19. The board of OIL has declared a final dividend of 16 per cent (Rs 1.60 per share) for 2019-20.
“OIL has availed the option of (tax dispute resolution scheme) Direct Tax Vivad se Vishwas Scheme, 2020 for settlement of its pending Income Tax disputes which is pending for approval of designated authority,” the statement said, without giving details.
On the blowout at a gas producing well in Baghjan field in Assam, OIL said efforts to control it are going on. “Teams of OIL, ONGC and international expert are working to control the well at the earliest,” it said. “Due to blow out, there is production loss of about 80,000 standard cubic meters per day of natural gas which is only about 1 per cent of OIL’s daily natural gas production.”