Hit by a 146 per cent jump in subsidy burden, government-owned oil exploration firm Oil India on Tuesday reported a 16 per cent drop in net profit for the quarter ended September 30. Net profit for the quarter was Rs 954.6 crore compared to Rs 1,138.5 crore in the same period last year. Revenues from sales dropped 25 per cent to Rs 2,519 crore. Under the government’s subsidy burden sharing mechanism, the company contributed Rs 2,078 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.
OIL realised $52.51 on every barrel of crude oil after giving discount of $56.12 to OMCs. Last year same quarter, it had realised $86.27 per barrel after discount of $26.21 per barrel. In the quarter, the company produced 1.651 million tonnes of oil and gas, marginally down from last year’s 1.658 million tonnes.