2023-05-24 15:17:34
Oil India Ltd beat its fourth-quarter profit estimates on Wednesday, benefiting from higher gas prices as the country’s economy’s recovery from the pandemic-driven slowdown boosts demand for energy.
The Indian government has also reduced windfall taxes on crude oil, providing relief to companies in the energy sector.
Oil India’s profit rose 9.71% to 17.88 billion rupees ($218.64 million) from a year earlier, against an average analyst estimate of 17.21 billion rupees , according to IBES data from Refinitiv.
The natural gas segment’s profit before tax and interest for the March quarter jumped to 8.24 billion rupees from 767.1 million rupees a year ago.
India raised the prices of locally produced gas between October 2022 and March 2023 to a record high of $8.57 per million metric British thermal units.
Old fields operated by Oil and Natural Gas Corp and Oil India Ltd account for about 80% of India’s annual gas production, which amounts to some 91 billion cubic meters.
Oil India reported a pre-tax profit of 1.16 billion rupees for its pipeline transportation unit, compared to a loss of 595.3 million rupees a year ago.
The company also said operating revenue increased by 26% to Rs 56.50 billion.
($1 = 81.7800 Indian rupees)
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