Declining global oil prices may have brought relief to consumers and another round of cut in motor fuel prices is expected but the slide is putting a squeeze on the bottomline of domestic oil producers and refiners in the second quarter.
Oil India Ltd saw its net profit slide 33% in the September quarter due to declining realization on each barrel, which was amplified by a drop in output.
Net profit dropped to Rs 608.3 crore from Rs 903.7 crore in the previous corresponding period, the company said in a statement.
Gross realization on each barrel of oil dropped 6.5% to $101.3 in the quarter under review from $108.3 in the previous corresponding period. Net realization too slid to $45.3 per barrel as compared to $52.3. Crude production fell by over 4% to 0.88 million tonnes but gas output was 4.2% higher at 0.69 billion cubic metres.
The company gives discounts to state refiners to help bridge part of their losses on selling kitchen fuels at government-capped rates, which reduces its net realization.
BPCL Refiner Bharat Petroleum's net dropped 50% in the quarter under review as the company's refining margin dipped due to a nearly 30% drop in global oil prices.
Profit in the July-September period slid to Rs 464.2 crore from Rs 931.1 crore in the same period a year ago, the company said in a filing to bourses. The company's refining margin stood at $2.4, down from $4.4 per barrel in the same period last year.
The trend was bucked by ONGC Videsh Ltd, which reported a 9.6% increase in net profit in the first half of the fiscal on the back of higher oil and gas output. Net profit in the April-September period rose 9.7% to Rs 2,068 crore against Rs 1,886 crore in the same period a year ago, the company said in a statement. OVL is an unlisted firm and does not give quarterly earning numbers.
Oil India Ltd saw its net profit slide 33% in the September quarter due to declining realization on each barrel, which was amplified by a drop in output.
Net profit dropped to Rs 608.3 crore from Rs 903.7 crore in the previous corresponding period, the company said in a statement.
Gross realization on each barrel of oil dropped 6.5% to $101.3 in the quarter under review from $108.3 in the previous corresponding period. Net realization too slid to $45.3 per barrel as compared to $52.3. Crude production fell by over 4% to 0.88 million tonnes but gas output was 4.2% higher at 0.69 billion cubic metres.
The company gives discounts to state refiners to help bridge part of their losses on selling kitchen fuels at government-capped rates, which reduces its net realization.
BPCL Refiner Bharat Petroleum's net dropped 50% in the quarter under review as the company's refining margin dipped due to a nearly 30% drop in global oil prices.
Profit in the July-September period slid to Rs 464.2 crore from Rs 931.1 crore in the same period a year ago, the company said in a filing to bourses. The company's refining margin stood at $2.4, down from $4.4 per barrel in the same period last year.
The trend was bucked by ONGC Videsh Ltd, which reported a 9.6% increase in net profit in the first half of the fiscal on the back of higher oil and gas output. Net profit in the April-September period rose 9.7% to Rs 2,068 crore against Rs 1,886 crore in the same period a year ago, the company said in a statement. OVL is an unlisted firm and does not give quarterly earning numbers.
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