Mozambique LNG stakeholder Oil India reports increased net profits helped by higher crude prices
Oil India Limited, the state-owned oil and natural gas company and a stakeholder in Mozambique LNG, posted 13.5 percent higher quarterly net profits while revenues also rose, helped by higher crude prices offsetting lower natural gas values.
The company, which traces its roots to the first discovery of the crude oil in India at Digboi in Assam in 1889, is the nation’s second-largest exploration and production company after Oil and National Gas Corp. (ONGC) and the net profits in the quarter to the end of March 2024 were its highest ever.
Oil India said fourth-quarter net profits came to 2,029 crore Indian rupees ($243.5M) compared with 1,788 crore rupees ($214.6M) in the prior-year quarter.
The company said quarterly earnings per share increased to 18.71 rupees from 14.61 rupees per share.
Mozambique plans
Serious moves had recently been underway to resume the TotalEnergies-led project development.
Oil India’s stake in Mozambican LNG is in the Area 1 Rovuma Basin licence operated by TotalEnergies and centred on the long delayed liquefaction plant construction on the Afungi Peninsula in Cabo Delgado province.
Other overseas stakes are held by Japan's Mitsui with 20 percent stake and three Indian companies, ONGC Videsh, Bharat PetroResources and Beas Rovuma Energy each have a 10 percent and Thailand's PTTEP owns 8.5 percent.
Oil India is involved in the Area 1 Block through its 40 percent shareholding in Beas Rovuma Energy.
In its earnings statement, Oil India said revenues for the quarter increased to 5,757 crore rupees ($691M), up from the 5,646 crore rupees ($677M) earned in the fourth quarter of 2023.
The company reported annual fiscal-year revenues of 22,129 crore rupees ($2.65 billion) versus 23,259 crore rupees ($2.79Bln) in the previous 2022-2023 fiscal year.
Annual fiscal-year net profits dropped to 5,551 crore rupees ($666M) from 6,810 crore rupees ($817M) in the previous year.
Earnings per share for the year declined to 51.20 rupees per share from 62.80 rupees per share.
Crude prices
The company, whose headquarters are in Noida in the state of Uttar Pradesh, said that global crude oil prices jumped during March, benefiting the company's bottom line.
Oil India's crude oil division accounts for more than 70 percent of total revenue and natural gas for much of the rest.
“We achieved a growth in our natural gas production during the fourth quarter by 3.21 percent over the corresponding quarter of FY23 and the company achieved the highest ever domestic natural gas production of 3.182 billion cubic metres,” India Oil said.
Annual crude oil revenues declined to 16,123 crore rupees ($1.93Bln) compared with 16,787 crore rupees in the previous fiscal year.
Natural gas revenues for the year came to 5,189 crore ($623M), down from 5489 crore rupees ($659M) in the previous year.
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