Hit by a 146% jump in subsidy burden, government owned oil exploration firm Oil India Ltd today reported a 16% drop in net profit for the quarter ended September 30. Net profit for the quarter was Rs 954.57 crore compared to Rs 1,138.52 crore in the same period last fiscal. Revenue from sales dropped 25% to Rs 2,519 crore in the said quarter. Under the government’s subsidy burden sharing mechanism, the company contributed Rs 2,078.17 crore towards partly compensating revenue loss of oil marketing companies on diesel, kerosene and domestic LPG. In the last year’s corresponding quarter, the company had contributed Rs 844.44 crore in form of discounts to OMCs.
The company realised $52.51 on every barrel of crude it sold to OMCs after the discount of $56.12. In the same quarter last year, it had realised $86.27 on every barrel since discount was much lower at $26.21. OIL produced 1.651 million tonnes of oil and oil equivalent of gas in the quarter, down marginally from last year's corresponding number of 1.658 million tonnes.