Oil India suffers second quarterly loss with a net loss of 294 crore in FY 21

Oil India Ltd, the nation’s second-largest state-run oil and gas producer, has logged its second quarterly loss in history in the June quarter of 2020 after crude oil prices slumped to a level lower than the cost of production.

Oil India Ltd, the nation’s second-largest state-run oil and gas producer, has logged its second quarterly loss in history in the June quarter of 2020 after crude oil prices slumped to a level lower than the cost of production.

OIL has suffered a net loss of Rs 249 crore in the first quarter of 2020-21 compared with a net profit of Rs 625 crore in the same period of the previous financial year.

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“This is the second quarterly loss in OIL history. We had a quarterly loss in 2018-19,” OIL director-finance Harish Madhav said on Saturday.

The price realised for the oil the company has produced dropped to $30.43 per barrel in the June quarter compared with $66.33 a barrel realised a year back, he said.“Our cost of production is around $32-33 per barrel and a drop in price was the primary reason for the loss in the first quarter,” he said.