DULIAJAN, Sept 22 - Navaratna PSU Oil India Ltd (OIL) has just about managed to remain in a growth trajectory, as was revealed in the company�s annual general meeting here today.
The company�s Chairman and Managing Director Utpal Borah stated on record that OIL has registered a crude oil production increase of 3.37 per cent during the fiscal ended March 31 this year. The turnover of the company too has increased by 12.05 per cent, while profit after tax stood at Rs 2667.93 crore, up from the previous financial year�s figure of Rs 1548.68 crore.
With global crude oil prices rising once again, OIL has benefited by its virtue. In the absence of substantial exploration and production successes, the company has made some profits under fortuitous circumstances.
Even so, the overall mood at the annual general meeting today was upbeat, with the OIL management hopeful of a turnaround in exploration and production activities in its core operational areas. The positive survey and pre-production projections all point to bigger oil and gas production successes, especially in Upper Assam and its adjoining areas in Arunachal Pradesh.
Borah said OIL has made a total of four hydrocarbon discoveries in the Upper Assam basin during the year at Lakwagaon, South Baghjan, South Chandmari and Hukanguri and also established the first commercial oil production from a new formation in Upper Assam basin.
He said OIL is proud that international credit ratings company Moody�s has put OIL in �Baa-2� category, which means stable. Similarly, international ratings agency Fitch has given OIL �BBB - (Stable)� rating. Domestic rating groups too have given OIL good performance marks. He said all these mean that OIL will continue to grow and give dividends to society and government.
During the last financial year (2017-18), OIL has paid 140 per cent interim dividend to its shareholders. With another payout of 10 per cent, the final dividend is 150 per cent. OIL last year has issued bonus shares in the ratio of 1:2, i.e., one bonus share for two shares held. The shares were allotted in April, 2018. During the same period, OIL has bought back 4,49,12,000 equity shares in June, 2017 with total payout of Rs 1,527 crore.
The earning per share (EPS) of the company for fiscal 2017-18 improved to Rs 23.32 from Rs 13.13 for FY 2016-17.
Borah said OIL�s core motive is to become �the fastest-growing energy company with a global presence, providing value to stakeholders�. The company�s focus remains on its core competence of exploration and production of hydrocarbons. OIL�s hydrocarbon production primarily comes from its matured fields in the Northeast and �our main priority is to sustain and increase production from these matured fields. To enhance recovery, water injection and EOR/IOR technologies have been adopted which have the ability to liberate additional production capacity.
The CMD revealed that OIL is venturing into allied activities like City Gas Distribution (CGD). OIL ventured into the arena of CGD business in consortium with HPCL. Based on the bids submitted under 8th round of CGD bidding, PNGRB issued letter for grant of authorisation to the consortium of HPCL and OIL for development of CGD network in the Geographical Area (GA) of Ambala and Kurukshetra and Kolhapur in 2018.
It may be mentioned that in 9th round of CGD bidding, OIL in consortium with Assam Gas Company and GAIL has won two bids for Cachar- Hailakandi-Karimganj districts and Kamrup-Kamrup Metropolitan districts. OIL signed an MoU with Assam Petrochemicals Ltd (APL) and Government of Assam to take 49 per cent stake in the 500 TPD methanol and 200 TPD formaldehyde project in February, 2018 during the Advantage Assam summit.