Oil India Limited reports record production and financials for FY 2023-24

Oil India Limited, recently designated a Maharatna CPSE by the Government of India, unveiled its financial results for FY 2023-24 during the 554th meeting of the Board of Directors on May 20, 2024. Demonstrating robust operating performance, the company achieved its highest ever oil and oil equivalent gas (O+OEG) production of 6.54 MMTOE. This stellar production led to a record-breaking EBIDTA of ₹11,643.30 crore for the fiscal year.

Oil India Limited Profitability and Strategic Financial Management

Despite facing challenges, Oil India Limited recorded its highest-ever quarterly profit after tax (PAT) for Q4 FY24 at ₹2,028.83 crore, marking a 13.45% increase over the same quarter the previous year. However, the annual PAT saw a decrease to ₹5,551.85 crore from ₹6,810.40 crore in FY22-23, attributed to provisions made for statutory compliances.

Operational Highlights and Future Outlook

In FY 2023-24, Oil India continued to focus on enhancing the nation’s energy security by maintaining production levels at its mature oil and gas fields. The company reported a 6% year-over-year increase in crude oil production in Q4 FY24, with a total of 3.359 MMT produced throughout the year—a 5.76% increase from FY23. Additionally, the company achieved its highest-ever natural gas production of 3.182 BCM.

Highlighting its operational excellence, Oil India drilled a record 61 wells during the fiscal year, surpassing all previous records since the company’s inception. This underscores Oil India’s commitment to sustaining and enhancing production capabilities.

Dividends and Bonus Shares

Reflecting confidence in the company’s stable financial position, the Board recommended issuing bonus shares at a ratio of one equity share for every two existing shares held. Moreover, a final dividend of ₹3.75 per equity share (pre-bonus) was declared, which will amount to ₹2.50 per share post-bonus. This final dividend comes in addition to the first and second interim dividends of ₹3.50 and ₹8.50 per equity share (pre-bonus), respectively, paid during the year.

Group Performance and Market Conditions

With NRL as a group company, Oil India’s group turnover was reported at ₹36,303.62 crore, a decrease from ₹41,025.98 crore in FY23. This decline was primarily due to lower crude oil, natural gas, and petroleum product prices in FY24 compared to the previous fiscal year, coupled with a reduced throughput at NRL due to a refinery turnaround in Q1 FY24.

Oil India’s FY 2023-24 performance highlights its resilience and strategic foresight in navigating market volatilities and maintaining a strong production output. The company’s focus on optimizing existing resources and expanding operational efficiencies is likely to continue driving its success in the challenging energy sector.