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OIL to witness profitable September quarter, even with heavy taxes

OIL to witness profitable September quarter, even with heavy taxes

Oil India Ltd. (OIL) is reportedly expecting a sturdy growth in the September quarter, despite experiencing heavy windfall tax on crude sales.

For the unversed, the Indian government announced the imposition of windfall tax in July, amid roaring rumors that industry players were making abnormal profits attributable to a spike in crude oil prices.

Reportedly, the tax has been minimized from USD 286 per ton to USD 129 per ton, to be in tow with the fall in global prices.

Despite the average windfall tax of nearly USD 25-USD 26 per barrel over the quarter, Oil India Ltd. managed to release the barrels at USD 80 a piece, which is yielding lucrative results for the corporation.

Elaborating on the sizable profits, the company’s Head of Financial Operations, Harish Madhav, claimed that the outcome was far better than what they were expecting a year earlier.

In other news, the corporation will be undertaking several projects in the forthcoming months. For starters, the crude oil behemoth is planning to invest a sum of nearly USD 3.42 billion to expand the manufacturing capacity of the Numaligarh facility from 3 million tons a year to 9 million tons a year. Furthermore, the company is likely to construct a connecting crude oil pipeline from Paradip in Odisha.

The expenses for this ambitious project would be funded via debt and the balances from internal resources. It is expected to be fully operational by the end of 2025.

Giving insights into upcoming endeavors, Chairman Ranjit Rath stated that the company is currently working towards expanding its output to 4 million metric tons (MMT) of oil and 5 billion cubic meters (BCM) of natural gas for the next few years. Currently, the company produces around 3 MMT of oil and 3 BCM of gas.

 

Source Credits: - https://www.business-standard.com/article/companies/oil-india-sees-healthy-profit-in-september-qtr-despite-windfall-tax-122092400671_1.html

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Anusha

Anusha

As a voracious reader and thinker, employing words has always been my preferred method of narration. Anusha’s conviction that a drop of ink possesses the ability to influence even the most stubborn minds has been strengthened by completing a Master’s degree in English Literature and then eventually working as a full-time writer.