Oil India June quarter net drops 34.5 per cent

State-owned Oil India Ltd (OIL) on Tuesday reported a 34.5 per cent drop in its net profit for the quarter ended, 2013 due to a fall in net realisation caused by higher fuel subsidy outgo.

OIL, the country's second largest state explorer, posted a net profit of Rs 609.08 crore, or Rs 10.13 per share, in the quarter ended June,2013 as compared to Rs 929.93 crore, or Rs 15.47 per share, in the same period a year ago, the company said in a statement.

The company shelled out Rs 1,982.06 crore to make up for a part of the losses state retailers suffer on selling diesel, cooking gas (LPG) and kerosene at government controlled rates.

The subsidy outgo was lower than Rs 2,015.52 crore a year ago but the net realisation for the company at $45.88 per barrel was lower than $53.78 in first quarter last fiscal year.

Oil India and upstream firms extend the subsidy support by selling crude oil at a discount.

The company billed $101.88 per barrel but after extending $56 per barrel discount, got $45.88.

Last year, the discount was the same but the gross billing was $109.78 and so the net realisation was $53.78 per barrel.

Also, oil production fell marginally to 0.903 million tonnes from 0.946 million tonnes while gas output at 0.657 billion cubic metres (bcm) was marginally higher than 0.626 bcm production last year.

"During Q1, rupee has depreciated against $by 3.38 per cent - from Rs 54.10 in the Q1 FY 13 to Rs 55.93 in Q1 FY14. This has resulted in additional revenue of Rs 61.27 crore and Rs 12.72 crore in respect of crude oil and natural gas respectively," the statement said.

The company's turnover dipped 14 per cent to Rs 2,097.77 crore.

"The decrease in turnover is mainly because of lower net crude oil price realisation to the extent of Rs 325.91 crore," it said.