Comments
Hydrocarbon explorer Oil India took a sharp knock in the recent March quarter, with profit declining 96 per cent y-o-y. This was primarily due to low gas prices and royalty expenses. The half-yearly revision of domestic gas prices per the formula laid out by the government resulted in the fuel’s price crash nearly 35 per cent y-o-y to just about $2.5 per mmbtu in the recent March period. The other major drag was the one-time royalty expense, a result of the settlement of the dispute with the Assam government. Oil India booked an expense of ₹1,152 crore as differential royalty. The resolution of the dispute though has removed a major contingent liability overhang of over ₹10,000 crore for Oil India. But for the royalty expense, the company’s profit would have been much higher. Oil price was up about 60 per cent y-o-y in the March quarter. Also, oil and gas production was up. The company issued bonus shares (1:3) in January 2017.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.