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

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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.

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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.

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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.

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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.

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