Oil India Limited (OIL), a Maharatna CPSE under the Government of India, reported a significant decline in its standalone profit for the first quarter, primarily due to lower crude oil prices. Despite the challenges, the company's consolidated performance remained stable, supported by strong contributions from its subsidiary and Russian investments.

Financial Performance

Oil India's standalone profit after tax (PAT) for Q1 stood at ₹813.00 crores, a 45% decrease from ₹1,467.00 crores in the same period last year. The company's revenue declined to ₹5,012.00 crores from ₹5,839.00 crores year-on-year. Earnings per share (EPS) fell to ₹5.00 from ₹9.00 previously, while the EBITDA margin dropped to 34% from 43%.

The primary reason for the decline was a 22% fall in crude oil realization, which averaged $66.20 per barrel during the quarter, compared to $84.89 per barrel in the previous year.

Consolidated Performance

Despite the standalone profit decline, Oil India's consolidated profit after tax remained stable at ₹2,047.00 crores. The consolidated earnings per share slightly improved to ₹11.66 from ₹11.59. This resilience in consolidated performance was attributed to strong contributions from its subsidiary, Numaligarh Refinery Limited (NRL), and Russian investments.

Operational Highlights

• Crude oil production for the quarter was 0.85 Million Metric Tonnes (MMT)
• Natural gas production reached 0.83 Billion Cubic Meters (BCM)
• The company announced a new hydrocarbon discovery in the Namrup-Borhat OALP block
• Gas production commenced from the Bakhritibba DSF in Rajasthan

Future Outlook

Oil India has planned a capital expenditure of ₹6,995.00 crores for the current fiscal year. The company has set production targets of 3.70 MMT for oil and 3.65 BCM for gas.

Numaligarh Refinery Limited Performance

NRL, Oil India's material subsidiary, reported strong performance:

Russian Investments

Oil India's investments in Russian assets continued to yield positive results:

• Taas-Yuryakh project: Received dividends of approximately USD 17.00 million in Q1
• Vankorneft asset: Received dividends of USD 11.20 million in Q1

The company expects the dividend inflow from these assets to continue, subject to geopolitical conditions and oil price movements.

Conclusion

While Oil India faced challenges in its standalone performance due to lower crude oil prices, its diversified portfolio and strategic investments have helped maintain overall stability. The company continues to focus on production growth and long-term value creation across its portfolio.

Oil India Limited , a Maharatna CPSE under the Government of India, has released its financial results for the first quarter, revealing a mixed performance amidst challenging market conditions.

Financial Performance

The company reported a consolidated Profit After Tax (PAT) of ₹2,046.51 crore, marginally higher than the ₹2,016.30 crore recorded in the same quarter of the previous fiscal year. However, on a standalone basis, Oil India's PAT decreased to ₹813.48 crore from ₹1,466.84 crore in the corresponding quarter.

The decline in standalone profit can be attributed to a significant drop in crude oil price realization. The company saw its crude price realization fall by 22%, from $84.89 per barrel to $66.20 per barrel.

Key Financial Metrics

Operational Highlights

Despite the financial challenges, Oil India maintained its production levels:

• Oil & Gas Production: Sustained at 1.680 MMTOE (Million Metric Tonnes of Oil Equivalent), compared to 1.689 MMTOE in the same quarter of the previous year
• New Discoveries: Made a hydrocarbon discovery at the Namrup-Borhat OALP block
• Production Commencement: Began gas production from the Bakhritibba Discovered Small Field (DSF) block in Rajasthan's Jaisalmer District

Subsidiary Performance

Oil India's material subsidiary, NRL (Numaligarh Refinery Limited), maintained its performance:

• Crude Throughput: 799 TMT (Thousand Metric Tonnes), up from 764 TMT in the corresponding quarter of the previous year

Corporate Developments

In its 570th Board of Directors meeting, Oil India also approved the following:

1. Appointment of M/s Shome & Banerjee as Cost Auditors for the financial year
2. Appointment of M/s VAP & Associates as Secretarial Auditors for a term of five years, subject to shareholder approval

Outlook

While Oil India has managed to sustain its production levels and slightly improve its consolidated PAT, the company faces challenges due to volatile crude oil prices. The significant drop in crude price realization has impacted its standalone profitability. However, the company's efforts in maintaining production levels and exploring new fields demonstrate its commitment to ensuring energy security and sustainable growth.

As Oil India navigates through these market conditions, investors and industry observers will be keenly watching how the company adapts its strategies to mitigate the impact of lower crude prices while continuing to focus on exploration and production activities.