Tag: Oil India

Bonus Alert: This oil PSU will issue free shares on May 20 after HPCL, BPCL

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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State-run upstream oil explorer Oil India Ltd. informed the exchanges that its board will mull the issue of bonus shares at its board meet on May 20. The company will also consider its March quarter results that day.

This will be the fourth bonus issue that Oil India will be considering after 2010 and the first in the last six years.

In March 2012, Oil India had issued three bonus shares for every two held, while it issued one bonus share for every three held in January 2017. In March 2018, it declared a bonus issue in the ratio of 1:2, meaning one free share for every two held.

This comes after both Hindustan Petroleum Corporation Ltd. (HPCL) and Bharat Petroleum Corporation Ltd. (BPCL) issued bonus shares in the issue of 1:2 and 1:1 respectively.

The government still holds a 56.66% stake in Oil India, while Indian Oil Corporation holds a 4.93% stake in the company as of the March quarter. Both HPCL and BPCL hold 2.47% stake each in Oil India.

LIC also holds a 8.04% stake in the company at the end of the March quarter.

Record date for the bonus issue is yet to be determined.

Shares of Oil India have recovered from the day’s low post the announcement, currently trading 1.8% higher at ₹630.90. The stock has risen 143% over the last 12 months.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Mutual Funds exit PSUs like SJVN, IRCON in February, increase stake in PFC, IRCTC

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India’s Mutual Funds exited their positions in five state-run companies – SJVN Ltd. Bank of Baroda Ltd., SAIL Ltd., RITES Ltd. and IRCON International Ltd., according to a note by Nuvama Alternative & Quantitative Research.

Some funds also pared their existing positions in PSUs like NHPC, Oil India and NALCO.

While SBI Mutual Fund has exited stocks like SJVN and Bank of Baroda, Quant MF has exited SJVN, RITES and IRCON. Mutual Funds owned stakes ranging between 0.5% to 8.6% in these names as of December 31, 2023.

Shares of SJVN declined 8% in February and have corrected over 35% from their peak of ₹170. However, shares of Bank of Baroda and RITES had gained between 5% to 7% that month.

ICICI Prudential MF, while exiting some PSUs has also trimmed its existing positions in stocks like NHPC and Oil India. On the other hand, SBI MF has pared its stake in NALCO. Based on the December shareholding pattern, the SBI Arbitrage Opportunities Fund had a 3.65% stake in NALCO.

While SBI and Quant MF have exited certain PSUs, they have also bought fresh stake in state-run companies like PFC, Bharat Electronics and Container Corporation. Other funds have also purchased stake in PSUs during February.

In the above list, barring PFC and IRCTC, which declined 9.6% and 5.1% respectively in February, the other four names saw gains ranging from 10% to as high as 30% in the case of Oil India that month.

While these count as new purchases, Mutual Funds have also topped up their exposure in certain PSU names. Stocks like BHEL, BPCL, and PFC have seen fund houses park money in February.

The Nifty PSE index is trading with losses of over 2% in Wednesday’s trading session. All 20 constituents of the index are trading with losses. The index has corrected 7.3% from its peak of 9,731 which it hit last week.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

This multibagger PSU oil stock has announced ₹8.5 dividend per share today

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Oil India Ltd’s (OIL) on Friday announced a second interim dividend of ₹8.50 per share for the financial year 2023-24. The public sector undertaking (PSU) has decided March 18 as the record date for determining eligible shareholders. The company will pay the dividend on or before April 7.

“the Board of Directors in its meeting held today i.e. on 08th March, 2024 has inter-alia accorded its approval for:- a) Second Interim Dividend of Rs. 8.50/- per share (85% of paid-up capital) for the financial year 2023-24. The Second Interim Dividend 2023-24 will be paid on or before 07th April, 2024. [The Record Date – 18th March, 2024 was intimated vide our letter of even no. dated 01st March, 2024],” the company informed exchanges.

Oil India declared the first interim dividend of ₹3.5 per equity share for FY24 in November 2023.

For the year ending March 2023, Oil India has declared an equity dividend of 200.00% amounting to ₹20 per share. At the current share price of ₹630.10 this results in a dividend yield of 3.17%, according to data available on Moneycontrol. The company has a good dividend track report and has consistently declared dividends for the last 5 years.

Oil India results

Oil India posted a net profit of ₹1,584.3 crore in the third quarter of the fiscal year 2023-24. OIL’s revenue during the quarter under review slipped 0.3% to ₹5,323.7 crore, while margins slipped to 39.6%.

Oil India share price performance

Oil India share price settled at ₹630.25, down 0.57% at Thursday’s close on the NSE. The PSU oil stock has surged nearly 140% in the last one year and more than 390% in the last three years. So far this year, the stock has surged almost 70%.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Oil India to consider second interim dividend for FY24 on March 8

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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State-owned Oil India said on Wednesday (February 28) that its board would meet on Friday, March 8, 2024, to consider and declare a second interim dividend for the current financial year 2023–24.

“Notice is hereby given that a Board Meeting of the Company has been scheduled on Friday, 08th March 2024, inter-alia to consider and declare Second Interim Dividend for Financial Year 2023-24, if any,” the public sector undertaking (PSU) said in a regulatory filing.

Oil India reported its highest-ever quarterly net profit in the third quarter ended December 31 on the back of a rise in oil and natural gas prices. Net profit of ₹1,746.10 crore, or ₹ 16.10 per share, in October-December compared with ₹1,244.90 crore or ₹11.48 a share, in the same period a year back, the company said in a statement.

The rise in profitability was helped by the higher realisation on crude oil and gas the firm produces and sells. Also, output increased, helping both the topline and bottom line.

Oil India earned $88.33 for every barrel of crude oil it produced and sold in the third quarter of the current fiscal, up from $78.59 per barrel realisation in the year-ago period. Crude oil is refined at refineries to produce fuels such as petrol and diesel.

Prices of natural gas, which is used as fuel to produce electricity, make fertilisers and converted into CNG for use in automobiles, rose to $8.57 per million British thermal units from $6.10. The firm produced 0.81 million tonne of crude oil in October–December, up from 0.75 million tonne a year back.

Gas output also increased from 0.79 billion cubic metres to 0.8 bcm. It sold 1.41 million tonnes of oil and oil equivalent gas in the quarter as opposed to sales of 1.35 million tonne a year back. The highest-ever profit was “on strength of better pricing and higher output of crude oil and natural gas,” the company said.

Shares of Oil India Ltd ended at ₹567.30, down by ₹7.85, or 1.36% on the BSE.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

IOC, GAIL, ONGC fined for third straight quarter for failure to appoint directors

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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State-owned oil and gas giants including IndianOil, ONGC and GAIL (India) have been slapped with fines for the third straight quarter for failing to meet listing norm requirements of having the requisite number of directors on their board.

Stock exchanges have fined oil refining and fuel marketing giant Indian Oil Corporation (IOC), explorers Oil and Natural Gas Corporation (ONGC) and Oil India Ltd (OIL), gas utility GAIL, and refiners Hindustan Petroleum Corporation Ltd (HPCL) and Mangalore Refinery and Petrochemicals Ltd (MRPL) a cumulative ₹ 32.5 lakh, stock exchange filings showed.

In separate filings, the companies detailed the fines imposed by the BSE and NSE for either not having the requisite number of independent directors or the mandated women director in the third quarter ended December 31, 2023, but were quick to point out that appointment of directors was done by the government and they had no role in it. The companies had faced fines for the same reason in the previous two quarters as well.

The six PSUs in separate filings said they have been slapped with a fine of ₹5,42,800 each for the third quarter. While ONGC and its subsidiaries HPCL and MRPL, GAIL and OIL faced fines for not having the required number of independent directors on their board, IOC for not having a woman independent director on their board.

Listing norms require companies to have independent directors in the same proportion as executive or functional directors. They are also required to have at least one woman director on the board.

For the second quarter, IOC, ONGC, OIL, GAIL, Bharat Petroleum Corporation Ltd, HPCL and Engineers India Ltd had faced a fine of ₹ 5.42 lakh.

For the latest fine, IOC in the regulatory filing said that “being a government company, the power to appoint directors (including independent directors) vests with the Ministry of Petroleum and Natural Gas, Government of India, and hence the non-appointment of women independent director on the Board during the quarter ended December 31, 2023, was not due to any negligence/fault by the company.”

Accordingly, IOC said it should not be held liable to pay the fines and the same should be waived off.

“IOC regularly takes up with ministry for appointment of requisite number of independent directors (including woman independent director) to ensure compliance with corporate governance norms enunciated under SEBI (LODR) as well as the Companies Act,” it said, adding, it had in the past received similar notices from the two stock exchanges and its waiver request was granted. GAIL in the filing said, “Appointments are outside the purview/control of the GAIL’s management.”

“The non-compliance with regard to the composition of the Board was not within the control of the company and the company has been regularly pursuing with the Government of India (GoI) for appointment of requisite numbers of independent directors to meet the compliance requirements,” ONGC said.

The appointment of directors on its subsidiaries HPCL and MRPL too are done by the government. “The company is following up with the government from time to time for appointing the required number of directors on its board and GOI is seized of the matter,” HPCL said.

MRPL said it has been continuously following up with the ministry for the appointment of a requisite number of independent directors on the Board and “the same has been under active consideration” of the ministry.

Stating that the non-compliance was beyond the control of the company, OIL said it has requested the ministry for appointment of independent directors on the Board of the company to comply with Regulation 17(1) of the SEBI (LODR) Regulations, 2015.

The companies had cited similar reasons and remedial action when they had faced fines for non-compliance in the previous two quarters. IOC, ONGC, OIL, GAIL, BPCL, HPCL and Engineers India Ltd were slapped with a uniform ₹5,42,800 fine for the second quarter as well.

For non-compliance in the April-June quarter, ONGC was slapped with ₹3.36 lakh fine, IOC ₹5.36 lakh and GAIL ₹2.71 lakh fine. HPCL and BPCL were asked to pay ₹3.6 lakh fine each, while Oil India had faced a penalty of ₹5.37 lakh.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Oil India Q3: Net profit climbs to ₹1,584 crore, revenue slips sequentially

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Oil India Limited (OIL), one of India’s largest oil exploration and production companies, announced its financial results for the third quarter of the fiscal year 2023-24 on Tuesday, February 13. The state-run oil company posted a net profit of ₹1,584.3 crore, up from ₹325.3 crore in the previous quarter.

The company’s revenue during the quarter under review slipped 0.3% to ₹5,323.7 crore, down from ₹5,342.3 crore in the preceding quarter. The revenue from operations, however, was up 3.16% from the year-ago period. Earnings before interest, taxes, depreciation, and amortisation came at ₹2,105.7 crore, down 15.4% sequentially. In the year-ago period, the EBITDA came at ₹4,176.8 crore. 

The margins slipped to 39.6% from 46.6% sequentially and were down over 900 basis points from the year-ago period.

The shares of the PSU ended 0.4% in the green, continuing its gaining streak after a day’s fall. The stock has gained in eight out of the last 10 trading sessions.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Oil India rallies over 20% in 2 days—stock hits record high price of ₹406.40

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Oil India have gained more than 20% in the last two trading sessions, with the scrip of the state-owned upstream oil major hitting a record-high price of ₹406.40 on Wednesday, December 20. The positive sentiment in Oil India came on the back of the government cutting the windfall tax on crude oil produced in the country and on diesel exports on Monday, December 18.

The tax, levied in the form of Special Additional Excise Duty or SAED, on domestically produced crude oil has been reduced to ₹1,300 from ₹5,000 per tonne, according to an official notification. SAED on the export of diesel has been reduced to ₹0.50 a litre from ₹1 per litre.

Crude oil prices rising in the international market also aided the positive sentiment. The crude prices rose as the Red Sea shipping concerns weighed on the sentiment. The recent rocket attacks on ships in the Red Sea by Iran-backed and Yemen-based Houthi militants forced major shipping firms to reroute operations in the region. About 12% of world shipping traffic passes through the Red Sea via the Suez Canal route.

Brent crude futures rose $1.28, or 1.6 percent, to settle at $79.23 a barrel, the highest since December 1. US West Texas Intermediate crude futures for January delivery, which expired after settlement on Tuesday, rose 97 cents, or 1.3 percent, to settle at $73.44 a barrel, also the highest in over two weeks.

Brokerage view on Oil India

Domestic brokerage firm Antique has a ‘buy’ rating on Oil India with the target price set at Rs 419 per share.

“We believe that the company is on track to drive a 21% increase in oil production and a 51% jump in gas production in the medium term and increase its refining capacity 3x. The broader oil and gas price scenario remains stable with realizations being capped at USD 75/bbl and USD 6.5/mmbtu. The company is offering an FCF yield of 7% in FY26 at a normalized oil price assumption of USD 65/bbl. We maintain BUY with a target price of INR 419/share (vs. INR 375/share earlier), as we roll forward our estimates to FY26,” Antique analysts said in a research note.

Oil India Q2FY24 results and interim dividend

Oil India Ltd reported a 79.8% quarter-on-quarter decline in net profit at ₹325.3 crore for the second quarter that ended September 30, 2023. The firm had declared an interim dividend of ₹3.50 per share (35% of paid-up capital) for the financial year 2023–24.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Oil India Q2 Results | Net profit declines 80% to ₹325 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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State-owned Oil India Ltd on Wednesday (November 8) reported a 79.8% quarter-on-quarter decline in net profit at ₹325.3 crore for the second quarter that ended September 30, 2023.

In the first quarter of FY24, Oil India posted a net profit of ₹73 crore, the company said in a regulatory filing.

In the second quarter of this fiscal, total revenue stood at₹5,342.3 crore during the period under review, up 27.3% against ₹4,531.1 crore on a quarter-on-quarter basis.

At the operating level, EBITDA rose 6.9% to ₹2,488.5 crore in the second quarter of this fiscal over ₹2,328.9 crore in the first quarter of this fiscal.

EBITDA margin stood at 46.6% in the second quarter as compared to 51.4% in the first quarter of this fiscal. EBITDA is earnings before interest, tax, depreciation, and amortization.

Also Read: Raymond Q2 Results: Profit flat at ₹160 cr; firm optimistic on uptick in consumer demand

The rise in EBIDTA was backed by the company’s continued improvement in crude oil production, which was higher by 5.70% year-on-year in Q2 of FY24 at 0.835 MMT.

Crude oil production for the half year ended September 30, 2023, also increased by 5.48% to 1.655 MMT visa-vis 1.569 MMT for the same period in FY23.

The company registered an increase of 8.72% in its natural gas production during Q2 of FY24 over Q1 of FY24. The Earnings Per Share for the half year ended September 30, 2023, is ₹17.88 per share.

Also Read: United Spirits Q2 net profit dips 38%, to pay interim dividend

The company declared an interim dividend of ₹3.50 per share (35% of paid-up capital) for the financial year 2023-24. The interim dividend declared will be paid on or before December 8, 2023, it said.

“The Board of Directors decided Wednesday, 22nd November 2023 as the Record Date for ascertaining the eligibility of shareholders for payment of Interim Dividend 2023-24,” it said.

The results came after the close of the market hours. Shares of Oil India Ltd ended at ₹310.70, down by ₹0.80, or 0.26%, on the BSE.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

‘We are looking at legal options’ — Oil India chief on repatriating dividends from Russian assets

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Oil India wants to invest Rs 25,000 crore in renewable energy by 2040 — details here

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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To achieve its net zero targets, Oil India’s Chairman and Managing Director (CMD) Ranjit Rath announced on Thursday, September 14, that the company wants to invest Rs 25,000 crore in renewable energy by 2040. The CMD said 2040 is Oil India’s net zero initiative timeline and the firm is trying to advance it to somewhere around 2038.

The Rs 25,000 crore investment by Oil India would cover a wide spectrum of activities such as green hydrogen, compressed biogas, solar energy, geothermal energy, and zero-flaring initiatives. This investment will also involve transitioning from diesel-fired engines to gas engines.

Furthermore, of the total lump sum, the company intends to spend Rs 8,000 crore on 2G ethanol alone.

Shares of Oil India were trading nearly 1.2 percent higher at Rs 277 apiece around 1:40 pm after the announcement.

Rath said the company was looking at reducing gas flaring, or the burning of the natural gas associated with oil extraction, to a level zero. “We have initiated a lot of projects in that. We are also looking at capturing stranded gases, compressing and pushing them to the CGD (City Gas Distributors) network,” he said.

The CMD shared the company had set up a bamboo-based bio-ethanol plant and was trying to set up another such plant.

On the company’s portfolio in renewable energy, Rath said the company had a joint venture with Assam for a 620-megawatt solar power plant and is also collaborating with Himachal Pradesh for a 150-megawatt solar power plant.

Green hydrogen is another portfolio the company is looking at. “Our subsidiary NRL (Numaligargh Refinery) has placed an order for the displacement of grey hydrogen with green hydrogen. We are looking at 20-kilo tonnes per annum capacity of green hydrogen and looking at setting up compressed biogas plants that should cater to our CGD initiative,” he detailed.

That’s not all, Oil India is also looking at displacing diesel with natural gas for all operations wherever possible and using water injection technology to enhance oil production efforts.

Crude oil prices have been on the rise in recent times, a trend that the CMD views as a “welcome” development. He emphasised that these price increases are closely linked to international oil prices and play a pivotal role in encouraging “upstream players to invest more” in the sector.

Oil India, being a prominent player in the industry, is well-prepared to handle such fluctuations and maintain its production goals, Rath said.

Oil India’s current operations primarily focus on mature fields, where the decline rate in production is approximately 8-10 percent. Despite this, the company reported a net growth of 5.5 percent in production last year, with a gross growth of 15 percent.

Rath attributed this success to a “variety of interventions” undertaken by the company.

Looking ahead, Oil India has set ambitious targets, including a mission to achieve 4 metric tonnes of crude oil production and 5 billion cubic meters (BCM) of natural gas production by FY25.

The firm also revealed plans to drill around 60 wells in the main producing areas of Assam and Arunachal this financial year. In addition, the company is looking at six new deep rock well drilling this year and is contemplating deeper wells and deeper horizons.

Rath expressed confidence in the new gas price formula, especially its provisions for difficult fields, which allow for a price band plus 20 percent. “We are now looking at enhancing our gas portfolio very, very aggressively,” Rath said.

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3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow