Oil India net up 69.5%, may buy assets in Africa

MUMBAI: The state-run oil explorer Oil India, which on Thursday posted an over 69 percent rise in the June quarter net profit at Rs 847 crore, said it is looking at the possibility of buying a stake in the exploration assets of the Gabonian firm Etablissements Maurel et Prom in Africa.

"The block already has a discovery. We have our own people evaluating it, besides experts from other countries. A decision will be taken on our investments in Gabon (in west central Africa), after a feasibility study," Oil India Director (exploration & development) Baikunta Nath Talukdar said here, while declaring its quarterly financial results.

The company already has an exploration block in Gabon, where it has completed both 2D as well as 3D seismic studies, Talukdar added.

Net profit for the June quarter stood at Rs 849.61 crore, compared to Rs 501.11 crore in the year-ago period, a jump of 69.55 percent. This was mainly due to higher sales of both crude as well as natural gas, the company said.

Gross income rose 46.91 percent to Rs 2,668.72 crore, compared to Rs 1,816.51 crore y-o-y.

However, the subsidy during the quarter increased steeply to Rs 1,780.65 crore against Rs 729.66 crore y-o-y, affecting the profitability.

The gross realisation of crude stood at USD 116.32 a barrel, compared to USD 78.10 per barrel during the corresponding quarter. The net realisation during the Q1 FY 2011-12 was USD 59.55 per barrel compared to USD 49.68 per barrel as compared to corresponding quarter last year.

Oil India's net worth stood at Rs 16,500 crore and it is completely debt-free, with cash reserves of USD 2.5 billion.