Release Date: November 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Oil India Ltd (BOM:533106, Financial) reported a 4.79% increase in production for the quarter ended September 30, 2024, compared to the same period in 2023.
- Crude oil production increased by 5.5% in the half-year ended September 30, 2024, compared to the previous year.
- The company's turnover for the half-year ended September 30, 2024, increased by 7.58% to INR11,358.62 crores.
- Profit after tax for the half-year ended September 30, 2024, increased by 70.26% compared to the same period in 2023.
- Oil India Ltd (BOM:533106) is aggressively pursuing a long-term vision to achieve production close to 4 million tons of oil and 5 BCM of gas per year.
Negative Points
- Natural gas production for the quarter ended September 30, 2024, was marginally lower by 1.36% compared to the same period in 2023.
- The gross refining margin for Numaligarh Refinery Limited decreased significantly during the quarter.
- The company's EBITDA for Q2 FY25 decreased compared to the same quarter in the previous year.
- There was a sequential decline in natural gas production due to lower offtake by customers.
- The company's margin for Q2 FY25 decreased by 47.67% compared to Q2 FY24, primarily due to lower total prices.
Q & A Highlights
Q: What caused the sequential decline in natural gas production in Q2?
A: The decline was due to lower offtake by thermal power stations and some operational shutdowns. These factors led to reduced consumption, not a production issue.
Q: Can we expect a pick-up in gas offtake in Q3?
A: Yes, there should be an increase in Q3 as shutdowns are resolved. However, some seasonal factors might slightly offset this increase.
Q: What is the guidance for FY25 and FY26 gas production?
A: For FY25, the guidance of 3.2 to 3.3 BCM is maintained. For FY26, no specific guidance is provided yet due to ongoing upgrades and pipeline developments.
Q: Why was there a YoY decline in crude oil sales despite increased production?
A: A temporary shutdown at the Numaligarh Refinery led to a slight decline in sales, although production improved.
Q: What is the status of the Numaligarh Refinery expansion and related pipeline projects?
A: The refinery expansion is 70% complete, with commissioning expected by December 2025. The product evacuation pipeline is being augmented to handle increased capacity.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
