Oil India beats Expectations, profits up

State-owned oil explorer Oil India announced a robust financial performance for the fourth quarter, buoyed by elevated crude oil prices and robust demand, Reuters reported.

The company’s profit surged by 13.5 per cent to reach 20.29 billion rupees ($243.7 million), surpassing analyst projections which had anticipated a 9 per cent decline to 16.20 billion rupees, as per LSEG data.

The uptick in global crude oil prices, climbing nearly 14 per cent during the March quarter, proved advantageous for oil explorers.

Revenue from Oil India’s crude oil segment, constituting over 70 per cent of its total revenue, experienced a notable increase of 13.8 per cent during the quarter. However, the natural gas segment saw a decline of 17.4 per cent.

Overall revenue from operations for Oil India witnessed a 2 per cent rise, totaling 57.57 billion rupees, surpassing the estimated figure of 56.18 billion rupees.

Concurrently, total expenses increased by 8.8 per cent to 40.65 billion rupees. Additionally, the board proposed issuing bonus shares in a 1:2 ratio.

Oil India’s peer, Oil And Natural Gas Corporation Ltd is slated to release its results later today.

Notably, Oil India’s shares concluded 1.2 per cent higher on Friday, reaching 647 rupees, marking a year-to-date gain of approximately 74 per cent in 2024.