New Delhi, November 9 (Language) Public sector company Oil India Limited (OIL)’s net profit declined by 81 percent in the second quarter of the current financial year ended in September due to one-time provision for tax liability.
In the information sent to the stock exchanges, the company said that its standalone net profit in the July-September quarter stood at Rs 325.31 crore. Due to this, the company had earned a net profit of Rs 1,720.53 crore in the same quarter of the last financial year.
The country’s second largest public sector oil and gas exploration and production company has made a provision of Rs 2,655.57 crore for Goods and Services Tax (GST) liability.
Service tax has been demanded from the company for the period March 2016 to June 2017. The company was demanded to pay taxes on royalties paid on crude oil and natural gas to state governments.
The company’s income before tax (Ebitda) increased to Rs 3,197.74 crore in the quarter from Rs 2,743.03 crore a year ago. The company’s turnover increased to Rs 5,913.31 crore in the quarter, which was Rs 5,772.88 crore in the same quarter of the previous financial year. ,
The company earned $ 86.86 on each barrel of crude oil production in the second quarter of the current financial year, whereas the company’s earning in the same quarter a year ago was $ 100.59. The company’s net realization from crude oil after paying windfall profit tax stood at $75.49 per barrel.
The company’s crude oil production increased by 5.6 percent to 8.35 lakh tonnes during the quarter. At the same time, gas production declined to 81 crore cubic meters, which was 823 million cubic meters in the same quarter a year ago.