During April-June 2013, the net profit of Oil India (OIL) declined 34.5 percent to Rs 609.08 crore or Rs 10.13 per share compared to Rs 929.93 crore, or Rs 15.47 per share in the year-ago period.
Net profit of the firm declined during the quarter because net realisation fell to $45.88 per barrel from $53.78 in first quarter last fiscal.
The fall in realisation is despite the fact that subsidy outgo was lower than Rs 2,015.52 crore a year ago.
In order to compensate partially for the under-recovery incurred by state-run oil marketing companies (OMCs), OIL paid Rs 1,982.06 crore. OMCs incur under-recovery on sale of diesel, cooking gas (LPG) and kerosene at government controlled rates. It may be noted that OIL 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 tonne from 0.946 million tonne while gas output at 0.657 billion cubic metre (bcm) was marginally higher than 0.626 bcm production last year.