Categories: Business

The impact of the fall in oil prices, OIL reported a loss of Rs 249 crore in the first quarter

Photo: OIL INDIA LTD

OIL logs Rs 249 cr loss in Q1 on slump in oil prices

new Delhi. Oil India Ltd (OIL), the second largest public sector oil and gas producer, reported a net loss during the first quarter (April-June) of the current financial year. The company has incurred losses due to crude oil prices falling below the cost of production. This is the second time in the company's history that it has incurred losses during the quarter.

Oil India incurred a net loss of Rs 248.61 crore in the first quarter of the current financial year. This earned the company a net profit of Rs 624.80 crore in the same quarter of the previous financial year. Oil India director (finance) Harish Madhav said that this is the second quarterly loss in the history of Oil India. Earlier, the company had a quarterly loss in 2018-19.

He said that the main reason for this is the fall in prices. During this period the company received a price of $ 30.43 for each barrel of oil produced. In the same quarter a year ago, the company received $ 66.33 per barrel production. Madhav said that our production cost is about $ 32-33 per barrel. The decline in crude oil prices is the main reason for the deficit in the first quarter.

Oil India produced 7.5 lakh tonnes of crude oil in the April-June quarter. The company's crude oil production was 8.1 lakh tonnes in the same quarter a year ago. Similarly, the company's natural gas production also declined marginally to 68 million cubic meters, from 71 million cubic meters in the first quarter of 2019-20. Madhav said the realization on natural gas production in the first quarter had come down to $ 2.39 per unit, or MMBTU, from $ 3.23 per unit earlier.

Oil India's cost of production of gas was $ 2.3 per unit. Madhav said that the realization on the production of gas was good, but the company suffered losses due to decrease in the production of oil.

This post was published on August 22, 2020 5:06 pm

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