News

Published: Feb 15, 2023
Updated: Feb 15, 2023

Oil India Ltd. (OIL) Reports Q3 2022's Highest-Ever Profit

Oil India Limited (OIL), a state-owned oil and gas company, has reported its highest ever quarterly net profit in Q3 2022. The success was driven by a rise in oil and natural gas prices and increased output of both crude oil and natural gas.

Record-Breaking Profit

The company reported a net profit of Rs. 1,746.10 crore, or Rs. 16.10 per share, in Q3 2022, compared to the previous year's Q3 net profit of Rs. 1,244.90 crore, or Rs. 11.48 per share. This record-breaking profit was due to the increased realisation on crude oil and gas produced and sold.

Rising Crude Oil and Natural Gas Prices

OIL earned USD 88.33 for every barrel of crude oil produced and sold in Q3 2022, up from USD 78.59 per barrel in the previous year's Q3. The prices of natural gas, used for producing electricity, fertilisers, and CNG for automobiles, also rose to USD 8.57 per million British thermal unit from USD 6.10mn.

Improved Production

The company's crude oil production increased to 0.81 million tonnes in Q3 2022, compared to 0.75 million tonnes in the previous year's Q3. Gas output also increased, rising from 0.79 billion cubic meters to 0.8 bcm. The company sold 1.41 million tonnes of oil and oil equivalent gas in Q3 2022, compared to sales of 1.35 million tonnes in the previous year's Q3.

9-Month Profit Growth

For the nine months ended December 31, 2022, the company's profit after tax recorded growth of over 120% to Rs 5,022.12 crore from Rs 2,257.30 crore in the previous year's 9-month period. The company's turnover increased by 27% during Q3 2022 to Rs 5,981.63 crore.

Interim Dividend Declared

The Board of OIL has declared a second interim dividend of Rs 10 per share, 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.

Remarkable performance

Oil India Ltd.'s Q3 2022 performance has been remarkable, with the highest-ever quarterly net profit driven by rising oil and natural gas prices and increased production of both crude oil and natural gas. The company's 9-month profit after tax growth and declared interim dividends are positive indicators of its continued success in the future.