State-owned Oil India Ltd on Friday reported a 9% drop in its June quarter net profit after a drop in natural gas price offset gains made from higher oil production. The company posted a net profit of Rs450.24 crore, or Rs5.67 per share, in April-June compared with Rs494.41 crore, or Rs6.17 per share, in the same period of the previous fiscal.
“The reduction in profit after tax (net profit) was primarily due to the reduction in price of natural gas from $3.06 per million British thermal unit in Q1 FY 2016-17 to $2.48 per mmBtu in Q1 FY 2017-18,” Oil India said in a statement.
Total income or revenue was marginally higher at Rs2,485.70 crore in the first quarter as opposed to Rs2,460.85 crore in the same period of the previous year. Oil production rose 5.6% to 0.848 million tons in April-June, for which it got $48.41 per barrel as against $43.09 in Q1 of the previous year.
During the quarter, OIL completed buy back of its 4.49 crore shares, representing 5.60% of the total paid up equity shares, at an offer price of Rs340 per share. “As a result the share capital has decreased to Rs756.60 crore as on 30 June,” the statement added.