State-owned Oil India Ltd (OIL) today reported a 40 per cent jump in its June quarter net profit as its net price realisation soared after cut in subsidy.
Net profit in April-June rose to Rs 851.87 crore, or Rs 14.17 per share, from Rs 609.08 crore, or Rs 10.13 per share, in the same period a year ago, the company said in a statement here.
Upstream oil producers like OIL have to bear a portion of the losses that fuel retailers make on selling diesel, domestic LPG and kerosene at government controlled rates. This they do by extending discounts on crude oil they sell to retailers.
OIL said its subsidy payout was down almost 7 per cent at Rs 1,846.55 crore in Q1. Also, the gross oil price rose to USD 108.35 per barrel in Q1 as compared to USD 101.88 last year.
After accounting for USD 56 per barrel subsidy discount, its net price realisation rose to USD 52.35 per barrel as compared to USD 45.88 in the same period last fiscal.
"Due to depreciation in rupee against US dollar, the net realisation in rupee terms during Q1 is Rs 3,130.53 per barrel as compared to Rs 2566.07 a barrel during Q1FY14," the statement said.
The firm said its crude oil production dropped 6.5 per cent to 0.844 million tons but gas output was up 3 per cent at 0.677 billion cubic meters.