State-owned Oil India Ltd (OIL) reported its highest ever quarterly net profit in the third quarter ended December 31 on the back of a rise in oil and natural gas prices.
Net profit of Rs 1,746.10 crore, or Rs 16.10 per share, in October-December compared with Rs 1,244.90 crore, or Rs 11.48 a share, in the same period a year back, the company said in a statement.
The rise in profitability was helped by higher realisation on crude oil and gas the firm produces and sells. Also, output increased, helping both topline and bottomline.
OIL earned $88.33 for every barrel of crude oil it produced and sold in the third quarter of the current fiscal, up from $78.59 a barrel realisation in the year-ago period.
Crude oil is refined at refineries to produce fuels such as petrol and diesel.
Prices of natural gas, which is used as fuel to produce electricity, make fertilizers and converted into CNG for use in automobiles, rose to $8.57 per million British thermal unit from $6.10.
The firm produced 0.81 million tonnes of crude oil in October-December, up from 0.75 million tonnes a year back.
Gas output also increased from 0.79 billion cubic metres to 0.8 bcm. It sold 1.41 million tonnes of oil and oil equivalent gas in the quarter as opposed to sales of 1.35 million tonnes a year back.
The highest ever profit was "on strength of better pricing and higher output of crude Oil and natural gas," the company said.
For the nine months ended December 31, 2022, profit after tax recorded growth of over 120 per cent to Rs 5,022.12 crore from Rs 2,257.30 crore in the year-ago period.
The turnover increased by 27 per cent during Q3 FY-23 to Rs 5,981.63 crore.
The Board of OIL has declared a second interim dividend of Rs 10 per share (face value of Rs 10). This is in addition to the first interim dividend of Rs 4.50 per share declared earlier. The total interim dividend paid during the year is Rs 14.50 per share.