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OIL posts net loss of Rs 249 cr in Q1 of FY21 due to slump in crude oil prices

In Q1 of FY21, Oil India Limited (OIL), which is the country’s second-largest oil and gas producing company, has reported a net loss of Rs 248.61 crore

In Q1 of FY21, Oil India Limited (OIL), which is the country’s second-largest oil and gas producing company, has reported a net loss of Rs 248.61 crore.
In Q1 of FY21, Oil India Limited (OIL), which is the country’s second-largest oil and gas producing company, has reported a net loss of Rs 248.61 crore.
  • Global spread of Covid-19 and collapse in understanding between OPEC and Russia on continued production cuts lead to sharp fall in international crude oil prices, said OIL

  • The average crude oil price realisation was lower at US$ 30.43 /BBL in Q1 FY21 as compared to US$52.18/BBL during Q4 FY20

New Delhi: In Q1 of FY21, Oil India Limited (OIL), which is the country’s second-largest oil and gas producing company, has reported a net loss of Rs 248.61 crore, the company said on Saturday. The oil PSU had reported a net profit of Rs 624.80 crore in the June quarter of the previous financial year. “Due to substantially lower crude oil price realisation, the company has incurred loss of Rs 248.61 crore during Q1 FY21... Global spread of Covid-19 and collapse in understanding between OPEC and Russia on continued production cuts lead to sharp fall in international crude oil prices,” said OIL.

The average crude oil price realisation was lower at US$ 30.43 /BBL in Q1 FY21 as compared to US$52.18/BBL during Q4 FY20. The realisation in rupee terms was Rs 2,309/bbl in Q1 FY21 as compared to Rs 3,777/bbl in Q4 FY20. Natural gas price realisation during Q1 FY21 reduced to US$ 2.39/MMBTU from US$3.23/MMBTU in the previous quarter.

OIL Q1 FY21: Total income falls by 46%

In Q1 of FY21, OIL posted a total income of Rs 1,874.48 crore, which was 46 percent lower than Rs 3,496.10 crore it posted in the corresponding quarter of the previous financial year. The company’s turnover plunged by 48 percent as it settled at Rs 1,743.92 crore, down from Rs 3,373.36 crore in the corresponding quarter of the previous financial year.

Also read: OIL begins final well killing operation; Baghjan gas leak to be curbed in 24-36 hrs

OIL’s EBITDA fell by 77 percent as it settled at Rs 327.76 crore as against Rs 1,475.91 crore in Q1 of FY20. 

Crude oil production falls by 7%

OIL’s crude oil production in Q1 of FY21 dropped by 7 percent to settle at 0.752 MMT as opposed to 0.813 MMT in the corresponding quarter of the previous financial year. Natural gas production, on the other hand, fell by around 4 percent as OIL clocked output of 0.682 BCM as opposed to 0.712 BCM in the corresponding quarter of FY20. From May 27, the overall crude oil and natural gas production at OIL has also taken a massive hit due to protests and blockades in Assam in the wake of a well blowout that occurred on May 27 at one of the company’s oil wells in Baghjan. A total of 30,104 MT of crude oil and 71.01 MMSCM of natural gas have been lost as a result of protests, blockades, bandhs in and around Baghjan by locals since May 27, OIL had said earlier this week.

The authorities have been trying to curb the gas leaking from the well for three months now but have not managed to plug the leak so far. The gas leak has caused substantial damage to the ecosystem because of the oil well’s proximity to the Dibru Saikhowa national park, which is a biodiversity hotspot, and the famous migratory bird habitat Maguri-Motapung Beel.

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