Oil India Ltd Q4 results - Dividend

Oil India Ltd reported 9.09% higher consolidated net revenues for the Mar-21 quarter at Rs3,909.61cr. On a sequential basis, net sales revenues were up 56.56% compared to total revenues in the Dec-20 quarter at Rs2,497.24cr. Full-year revenues for FY21 were -22.6% lower at Rs1,222cr.

Net profits in the Mar-21 turned in lower at Rs847.56cr but this was purely on account of tax credits in the sequential and the YOY quarter. In fact, in the Mar-20 quarter and the Dec-20 quarter, Oil India had made a loss before tax. However, it had a tax credit of Rs1,418cr in the Mar-20 quarter and a tax credit of Rs1,288cr in the Dec-20 quarter.

If tax credits impact is excluded, the profits actually turned around to PBT from loss in Mar-20 and Dec-20 quarters. Net margins at 21.68% in the Mar-21 quarter were lower on a comparative basis.

Average crude oil price realization in 2020-21 was USD 43.98 per barrel as compared to USD 60.75 during 2019-20, a 27.61 percent decline resulting from demand disruption caused by COVID.

Also, average natural gas price realization during 2020-21 decreased by USD 1.37 to USD 2.09 per million British thermal units.

Crude oil production for 2020-21 at 2.964 million tonnes was 5.42 percent lower than the 3.134 million tonne output during 2019-20.

Natural gas output too was 5.68 percent lower at 2642 million standard cubic meters in 2020-21.

OIL said its board recommended a final dividend of Rs 1.50 per share for 2020-21. The company had earlier paid an interim dividend of Rs 3.50 per share in February.

The company has acquired an additional 54.16% ownership interest in Numaligarh Refinery Ltd (NRL) on March 26, 2021, for total cash consideration of Rs 8,676 crore increasing the equity stake in NRL to 80.16 percent, including 10.53% shares held on behalf of the Government of Assam. Thus, NRL is now a subsidiary of the company.

_{Disclaimer: The above report is compiled from information available on the public platforms. These are not buy or sell recommendations.}

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