Oil India Limited posts 1st quarter loss due to drop in oil rates

Oil India Limited reported on Saturday a net loss of Rs 249 crore in the 1st quarter of recent fiscal year as compared to a net profit of Rs 625 crore in Q1 FY20.The loss was largely due to price realised for oil the company produced dropped to 30.43 dollars per barrel in quarter one fiscal year 21 as compared to 66.33 dollars a barrel in the same period of previous fiscal.

“The global spread of Covid-19 and collapse in understanding between OPEC and Russia on continued production cuts led a sharp fall in international crude oil prices,” said Oil India in a statement.

The company produced 0.75 million tonnes of crude oil within April to June, down marginally from 0.81 million tonnes a year ago. Natural gas output too was marginally lower at 0.68 billion cubic metres (bcm) from 0.71 bcm in Q1 FY20.

As a result, total income in Q1 FY21 slipped to Rs 1,874 crore from Rs 3,496 crore in Q1 FY20.


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