Oil India declares highest quarterly net profit at Rs 1,720 crore

11 Nov 2022 , 09:29 AM

Despite a newly implemented windfall profit tax eliminating part of the profits resulting from an increase in oil prices, state-owned Oil India Ltd (OIL) on Thursday declared its highest quarterly net profit of Rs 1,720 crore for July-September.

In the second quarter of the current fiscal year, net profit increased to Rs 1,720.53 crore from Rs 504.46 crore, according to a statement from the company. Increased oil and gas prices caused the turnover to increase from Rs 3,678.76 crore to Rs 6,670.81 crore in July—September 2021.

The business, the second-largest state oil producer in the country, made an average of USD 100.59 for each barrel of oil it produced and sold in Q2 compared to USD 71.35 per barrel earnings the previous quarter. Gas output increased slightly to 0.823 billion cubic meters, while oil production remained steady at 0.79 million tonnes.

The government imposed a new tax on domestically produced crude oil starting in July to offset some of the gains made as a result of a rise in global oil prices, but the company still made a record amount of money. The price at which domestically produced crude oil is sold is benchmarked to market prices.

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