NEW DELHI, Aug 12 - The Oil India Limited (OIL) financial result for the first quarter of the current fiscal is a mixed bag.
Addressing a press conference, officiating Chairman-cum-Managing Director of OIL, UP Singh said that profit after tax (PAT) is higher by 40 per cent to Rs 775.42 crore in Q1 of financial year (FY) 2016 as compared to Rs 551.72 crore in Q4 of FY 2015 despite there being no subsidy in the last quarter of last fiscal.
However, PAT in Q1 FY16 is lower by 8.97 per cent, as compared to Q1 FY15 due to higher write-off of dry wells and provisions of MWP, he said.
Turnover during Q1 FY16 has increased by 6.25 per cent to Rs 2,882.64 crore as compared to Rs 2,712.99 crore in Q4 FY15. The turnover is also higher by 8.79 per cent as compared to Rs 2,649.84 crore in Q1 FY15, he said.
Further, depreciation of the Indian rupee against the US dollar also helped in higher net realisation in rupee terms. The net realisation in rupee terms has increased by 16.42 per cent to Rs 3,644.45/bbl as compared to Rs 3,130.53/bbl. The average rupee depreciated by 6.14 per cent to Rs 63.47 in Q1 FY16 from Rs 59.80 in Q1 FY15. The subsidy has affected the PAT by Rs 88.33 crore, Singh informed.
Meanwhile, land acquisition and environment clearance in Assam has emerged as main handicaps for oil exploration process in the State, said the CMD.
Further, frequent bandhs and law-and-order situation also hit production. Citing an instance, he said that oil production in an oil field in Arunachal Pradesh has been under suspension for a month.
About environment clearance, he said the situation in Assam is unique because the State has a number of small sanctuaries, where any industrial activity within 10 km is banned.
Referring to production of gas, he said that OIL was ready to supply the Assam Gas Cracker plant with gas but the commissioning of the project has been delayed from June to September 15.
Meanwhile, the Public Enterprise Selection Board has again advertised for the post of CMD OIL. Rupsikha Saikia Bora, who was selected for the post but her appointment was withheld, has again applied for the post, said an official. Bora�s appointment was not given the green signal by the PMO, creating a controversy.