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The company reported a net profit of Rs 775.42 crore during the quarter as compared to Rs 851.87 during the corresponding quarter last financial year (2014-15). "Profit after tax is lower by 8.9% in the first quarter due to higher write-off of dry wells and provisions of Minimum Work Programme (MWP)," acting Chairman and managing Director U P Singh said.
He added the two factors had an impact of Rs 100 crore as the dry well write-off stood at Rs 56.55 crore in June quarter as compared to Rs 9.09 crore in the corresponding quarter and the company had to provide Rs 50.46 crore in June quarter for MWP as against Rs 0.30 crore in the comparable quarter last fiscal.
Due to the sharp fall in the international price of crude oil, the gross average oil price was lower by 42.9% to $61.85 per barrel in the three months period ended June as compared to $108.35 per barrel in the first quarter last fiscal.
"However, due to lower subsidy burden on account of deregulation of diesel and petrol prices and the implementation of Direct Benefit Transfer (DBT) in LPG, the average net crude oil price realization was 9.6% higher at $57.42 per barrel during the quarter," he said.
OIL had to pay Rs 167.43 crore as subsidy burden to the Oil Marketing Companies (OMCs) in the June quarter as compared to Rs 1,846.55 crore in the same quarter last fiscal. The subsidy impacted the Profit After Tax (PAT) by Rs 88 crore, the company said.
Total income of the company during the quarter increased 7.5% to Rs 3,159.87 crore from Rs 2,937 crore in the corresponding quarter last fiscal. The company's production of oil and oil equivalent of gas during the quarter stood at 1.484 million tonne (MT), down from 1.521 MT in the corresponding quarter. IOC's sales stood at 1.347 MMTOE in the June quarter as compared to 1.385 MMTOE in the same quarter last fiscal.
The company also said it had acquired 10% participating interest in offshore Area 1 block in Mozambique jointly with ONGC Videsh (OVL). "The decree law supporting development of the LNG hub is ratified by the parliament of Mozambique. The Area 1 operator and the concessionaires are working towards meeting the target to achieve first LNG cargo delivery by the first quarter of 2020," IOC said.
The company's share price at the Bombay Stock Exchange (BSE) today closed at Rs 449.05, down 0.52% as compared to previous close.
