New Delhi, May 28: Oil India Ltd today reported a 26 per cent drop in fourth-quarter profit at Rs 565.62 crore against Rs 764.54 crore in the same period a year ago.
The decline came on the back of a fall in oil production and a sharp rise in subsidy outgo.
Subsidy payout rose to Rs 2,347.60 crore from Rs 1,849.72 crore in the year-ago quarter.
Upstream oil and gas producers such as OIL and ONGC make up for about 48 per cent of the losses that retailers incur on selling diesel, LPG and kerosene at government-controlled rates. The payout is in the form of discounts on crude oil they sell to IOC, BPCL and HPCL.
OIL said its gross billing for the crude oil it produced during the quarter was $106.55 per barrel, but after giving a subsidy discount of $69.19, it realised only $37.36 per barrel.
Last fiscal, it got a net price realisation of $55.44 after giving a subsidy discount of $56 per barrel.
Crude oil production dropped to 0.789 million tonnes from 0.873 million tonnes, while natural gas output was lower at 0.624 billion cubic metres against 0.648 bcm in the year-ago period.
Turnover fell to Rs 2,549.57 crore from Rs 3,103.62 crore in the same period previous fiscal.
For the fiscal, the company reported a 17 per cent drop in net profit at Rs 2,981.30 crore. Subsidy outgo rose to Rs 8,736.84 crore from Rs 7,892.17 crore in 2012-13.
State-owned refiner HPCL plans to increase the capacity of its Mumbai and Visakhapatnam refineries at a cost of Rs 17,000 crore, B.K. Namdeo, HPCL director (refineries), said. The PSU plans to increase the capacity of the Mumbai refinery to 10 million tonnes per annum and that of Vizag to 15 million tonnes per annum.