1 year ago
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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
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