Oil India reports 40% jump in Dec qtr profit on high output, better pricing

State-run explorer Oil India reported a bigger-than-expected 40% jump in third-quarter profit on Friday, aided by increased production and better price realisation

Oil India, Oil India plant
Oil India plant. Photo: http://www.oil-india.com
Reuters BENGALURU
2 min read Last Updated : Feb 10 2023 | 9:40 PM IST

BENGALURU (Reuters) -State-run explorer Oil India reported a bigger-than-expected 40% jump in third-quarter profit on Friday, aided by increased production and better price realisation.

Crude oil production for the three months ended Dec 31 increased 7.03% from a year earlier, while natural gas output rose 1.64%, fuelling a more than 57% jump in revenue from operations to 58.79 billion rupees ($12.1 million).

The company said it posted its highest ever profit in a quarter due to better pricing and higher output of crude oil and natural gas.

Profit rose to 17.46 billion rupees, while analysts, on average, had expected a profit of 14.44 billion rupees, according to Refinitv IBES data.

Demand for crude and natural gas has remained elevated as the economy rebounded from the pandemic-induced slump.

Natural gas segment posted a profit before tax of 10.91 billion rupees, compared with a loss of 1.08 billion rupees a year ago.

The profit was hit by a windfall tax India imposed on oil producers in July.

The company's expenses rose over 18% to 36.79 billion rupees, mainly due to 5.03 billion rupees of excise duty.

Oil India shares settled 2.4% lower ahead of the earnings.

Shares advanced 4.7% in 2022, compared to a more than 14% rise in the Nifty Energy Index

($1 = 82.4570 Indian rupees)

(Reporting by Nishit Navin in Bengaluru; Editing by Dhanya Ann Thoppil)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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Topics :Oil India resultsoil

First Published: Feb 10 2023 | 9:40 PM IST

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