Oil India Ltd, the nation’s second largest state oil and gas producer, logged second quarterly loss in its history in April-June after crude oil prices slumped to lower than cost of production.
Net Loss
OIL had a net loss of Rs 248.61 crore in first quarter of 2020-21 fiscal as compared to a net profit of Rs 624.80 crore in the same period of the previous financial year.
Reason behind the Loss
The loss was largely due to price realised for oil the company produced dropped to 30.43 dollars per barrel in Q1 FY21 as compared to 66.33 dollars a barrel in the same period of previous fiscal.
Covid impact
“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,” Oil India said in a statement.
About Production
The company produced 0.75 million tonnes of crude oil during 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.
Cost of Production
“Our cost of production is around USD 32-33 per barrel and a drop in price was the primary reason for the loss in Q1,” Oil India said in a Statement
Turnover
Turnover in April-June reduced to Rs 1,874.48 crore from Rs 3,496.10 crore in the same period last year.
