Oil India Limited reports EBITDA increase to Rs 8,474.4cr in Q3 FY24
In a striking demonstration of resilience and operational efficiency, Oil India Limited, a leading fully integrated oil & gas Maharatna Central Public Sector Enterprise (CPSE), has announced a notable increase in its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the nine months ending December 31, 2023. The company’s EBITDA rose to ₹8,474.47 crore from ₹8,399.17 crore during the corresponding period last year. This growth is underscored by an improvement in the EBITDA margin, which has climbed to 47.28% compared to 44.96% in the previous year, marking a significant achievement in the company’s financial health and operational efficiency.
At the operational forefront, Oil India Limited has reported a commendable 5.68% increase in Crude Oil production, reaching 2.511 Million Metric Tonnes (MMT) as compared to 2.376 MMT in the same period last year. This performance is reflective of the company’s dedication to optimizing resources and enhancing production capabilities. Additionally, the company achieved a 6.07% year-over-year increase in crude oil production in the quarter ending December 31, 2023, further highlighting its operational success. Natural Gas production also saw a positive uptick, increasing by 2% over the third quarter of the previous fiscal year.
However, the company faced challenges in terms of Crude Oil price realization and lower crude throughput of Numaligarh Refinery Limited due to turnaround maintenance. The crude oil price realization for the nine months ended December 31, 2023, stood at US$ 82.89 per barrel, lower than the US$ 100.27 per barrel for the same period last year. Consequently, the group turnover was reported at ₹26,137.84 crore as opposed to ₹32,261.71 crore for the corresponding period, reflecting the impact of lower crude oil prices and refinery throughput on the company’s financial performance.
Despite these challenges, Oil India Limited’s financial metrics provide a robust outlook. The company’s total income for the nine months stood at ₹17,924.37 crore, with a net profit of ₹3,523.02 crore. The Earnings Per Share (EPS) also reflected a solid performance at ₹32.49/share. This financial resilience in the face of market dynamics showcases Oil India Limited’s strategic agility and its ability to navigate through fluctuating market conditions efficiently.
In conclusion, Oil India Limited’s financial and operational achievements in the third quarter of FY24 underline its capacity to achieve significant milestones across key performance indicators. The company’s focus on operational efficiency, resource optimization, and strategic market navigation continues to drive its success in the highly competitive and dynamic energy sector. This performance not only highlights Oil India Limited’s market resilience but also its commitment to sustainable growth and value creation for its stakeholders.
Oil India Limited’s performance in Q3 FY24 is a testament to its strategic planning and operational excellence. Despite facing market volatility and challenges such as lower crude oil price realization and refinery throughput issues, the company has managed to post impressive financial and operational results. This underscores the importance of agility and resilience in the energy sector, where companies must continuously adapt to global market trends and operational challenges. Oil India Limited’s ability to improve its EBITDA margin and increase crude oil and natural gas production reflects its strong operational capabilities and strategic focus, positioning it well for future growth and success in the energy market.