Oil India rose 1.69% to Rs 96 after consolidated net profit stood at Rs 1,597.40 crore in Q4 March 2020 compared with net loss of Rs 70.59 crore in Q4 March 2019.
Consolidated net sales slipped 15.8% to Rs 2,607.38 crore in Q4 March 2020 from Rs 3,097.26 crore in Q4 March 2019. Profit before tax (PBT) surged 199.9% to Rs 267.57 crore in Q4 March 2020 as against Rs 89.22 crore in Q4 March 2019. The board of Oil India has declared a final dividend of Rs 1.60 per share for FY20. The Q4 earnings was announced after trading hours on Friday, 26 June 2020.
"OIL has adopted the new concessional tax regime. The effective tax rate under the new regime would be 25.17%. This has resulted in reversal of deferred tax liability of Rs 821.01 crore during 2019-20," the company said.
"The firm has availed the option of Direct Tax Vivad se Vishwas Scheme, 2020 for settlement of its pending Income Tax disputes which is pending for approval of designated authority," it added. The lower tax rate offset drop in revenue from slump in oil and gas rates.
Crude oil price realisation during Q4 FY20 and FY20 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. Average Crude Oil price realisation during Q4 FY 2019-20 was $52.18/bbl (bbl = barrel of oil) which was lower by 15.51% as compared to crude oil price realisation of $61.76/bbl during Q4 FY 2018-19.
Crude oil price realization decreased 13.23% to Rs 3,776.79 per barrel in Q4 FY20 compared with Rs 4,352.84 per barrel in Q4 FY19.
Crude oil production stood at 0.758 MMT (million metric tonne) in Q4 FY20 compared with 0.784 MMT in Q4 FY19. Natural Gas production was at 0.645 BCM (billion cubic metres) in Q4 FY20 as against 0.703 BCM in Q4 FY19. Oil & Oil Equivalent production stood at 1.403 MMTOE (millions of tonnes of oil equivalent) in Q4 FY20 as compared to 1.487 MMTOE in Q4 FY19.
Crude Oil sales stood at 0.748 MMT in Q4 FY20 as against 0.777 MMT in Q4 FY19. Natural Gas sales was at 0.531 BCM in Q4 FY20 as against 0.620 BCM in Q4 FY19. Oil & oil equivalent sales stood at 1.279 MMTOE in Q4 FY 2020 as compared to 1.397 MMTOE in Q4 FY 2019.
Meanwhile, On 27 May 2020, one of the gas producing well in Baghjan field in Assam suddenly became very active while work over operation was on. The effort to control the blowout is going on. Teams of OIL, ONGC and international expert are working to control the well at the earliest. Due to blow out, there is production loss of about 80,000 SCMD of natural gas which is only about 1% of OIL's daily natural gas production.
National Green Tribunal has issued an order constituting a ten-member committee for investigation. NGT has also ordered OIL to deposit Rs 25 crore as an interim money with DC, Tinsukia.
Oil India is a state-owned Navratna under the administrative control of India's Ministry of Petroleum and Natural Gas. As of 31 March 2020, the Government of India held 56.66% stake in the company.
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