Country’s second largest state-run explorer Oil India Limited (OIL) on Tuesday reported 32.25 per

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cent drop in net profit in April-June quarter of this fiscal.

OIL recorded Rs 501.11 crore as profit after tax in the first quarter of the current financial year, while it was Rs 739.69 crore in the same period in the year ago period.

“Decrease in quantity sold, dip in net realisation on each barrel of crude due to higher subsidy burden and depreciation of rupee lead to a dip in net profit,” T K Ananth Kumar, director (finance) of OIL told reporters in the capital on Tuesday.

OIL produced 0.798 million metric tonnes (MMT) of crude in the first quarter, which is 9.52 per cent down from 0.882 MMT that the company produced in the same period in the last financial year.

The shutdown in Numaligarh Refinery Limited (NRL) for up-gradation resulted in dip in crude production, company chairman N M Borah told newsmen.

“They (NRL) anticipated the shutdown for 50 days, but it went for nearly 100 days,” Borah said. “We would have recorded 5 per cent increase in crude output this quarter if NRL shutdown would not have happened,” he added.

At present, OIL produces 68,000-70,000 barrels of oil everyday. The consequential crude oil production losses in the quarter due to NRL shutdown was 0.130 MMT.

“We are trying to ramp up our production. But, still we are not able to bring 700-800 barrels per day into production post NRL shut down,” Borah said.

OIL’s net realisation on each barrel of crude came down to $49.68 in first quarter of 2010-11, down 10.73 per cent from $55.65 in the corresponding period last year. The explorer had to shell out Rs 729.66 crore in the first four months this fiscal as subsidy to compensate state-owned oil marketing companies for selling fuel below market cost. Last year, it paid Rs 55.65 crore towards subsidy in the first quarter.

OIL faced an impact of Rs 102.15 crore for depreciation of rupee against the dollar. The average rupee to dollar exchange rate in April-June quarter this year was Rs 45.62, while it was Rs 48.79 in the same period last year.

Government’s decision to double natural gas price from nominated fields to $4.20 per million British thermal unit (mBtu) will add Rs 538 crore to the companies top line and Rs 350 crore to the bottom line annually, Borah said.

In addition, OIL chairman said he will be interested to partner ONGC Videsh-led consortium to buy BP's stake in offshore Vietnamese gas field.

ONGC Videsh along with PetroVietnam are expected to submit a joint formal offer within weeks to buy BP's stake in an offshore Vietnamese gas field, petroleum secretary S Sundareshan told reporters in the capital on Tuesday.