Oil India Annual Profit Drops on Lower Gas Price
Oil India has reported a net profit of rupees 15.45bn ($0.24bn) for the fiscal year that ended March 31, 2017, down from rupees 23.01bn reported in the previous fiscal.
The 33% drop in net profit was due to a one-time differential royalty on crude oil paid to the governments of the states of Assam and Arunachal Pradesh and the decrease in the price of gas from $4.24/mn Btu in fiscal 2015-16 to $2.78/mn Btu in 2016-17, Oil India said May 29.
Net profit in 4Q dropped 95% to rupees 1.93bn.
Natural gas production has been increasing on a sustained basis and Oil India produced its highest ever gas volume of almost 3bn m3 last fiscal, which is an increase of 3.48% over the production of the previous financial year.
The company drilled 60 wells (23 development and 37 exploratory) during fiscal 2016-17, which is the highest number of wells drilled in a year, it said.
Shardul Sharma