Oil India Limited reported PAT of Rs238.9cr during Q2 of 2020-21 against the reported net loss of Rs248.61cr during Q1 of 2020-21. The PAT during Q2 2019-20 was Rs627.23cr. It means Oil reported a drop of 61% in PAT on yoy basis.
The company gained 2% based on results on Sensex. At around 11.20 am, Oil India was trading at Rs88.75 per piece up by Rs1.85 or 2.13% from its previous closing of Rs86.90 per piece on the BSE.
The EBIDTA for Q2 2020-21 improved to Rs848.48cr as against Rs327.76cr during Q1 2020-21. EBIDTA during Q2 2019-20 was Rs1510.76cr. EBIDTA margin reduced to 37.21% in Q2 2020-21 from 43.39% in Q2 2019-20.
“The financial performance during Q2 2020-21 was adversely affected due to a sharp fall in oil and gas price realizations. Average Crude Oil price realisation during Q2FY21 was USD 42.74/bbl which was lower by 30.28% as compared to crude Oil price realisation of US$ 61.30/bbl during Q2 FY 2019-20.
Average natural gas price realisation during Q2 2020-21 is at US$ 2.39/MMBTU as compared to US$ 3.69/MMBTU in Q2 FY 2019-20. Crude Oil production for Q2 2020-21 is 0.746 MMT. Natural gas production during the same period is 638 MMSCM. Crude oil and natural gas production during H1 FY 2020-21 were 1.498 MMT and 1320 MMSCM respectively,” the company said.
During the half-year ended September 30, 2020, the company has assessed the potential impact of Covid-19 pandemic on its existing operations. The company does not anticipate any significant challenge in continuing its operations and meeting financial obligations. Hence, no impact is expected on the company's ability to continue as a going concern and meeting its obligations.
Due to the outbreak of Covid-19, there is no significant effect on useful life / residual life of Property, Plant and Equipment, Trade Receivable, Inventories and Lease Arrangements.
The company informed that a blowout occurred in producing well (Baghjan #5) in Baghjan Oilfield, Tinsukia district, Assam on May 27, 2020, and on June 9, 2020, the well caught fire. To control the blowout, all necessary remedial actions have been undertaken by the company. The total losses/damages arising out of the blowout can be assessed on successful control of the blowout.
However, as on 30th September 2020 an amount of ~ Rs227.51cr has been incurred to control the blowout and the same has been shown as Exceptional Item in the Statement of Profit and Loss.
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