Oil India Ltd (OIL) is a provider of natural gas and crude oil. It is a public sector company that is under the administrative control of Ministry of Petroleum and Natural Gas.
The market capitalisation of Oil India Ltd. as on 2 July 2018 is little over Rs. 23,700 crore.
Company’s Wealth and Recent Performance
- Oil India Ltd. reported a net profit of Rs.867 crore for Q4 of FY 2017-18 against Rs.19.31 crore profit in the corresponding period of the FY 2016-17. The net profit showcased a surge by more than 46 times. The company’s total income increased by 14% to Rs.3,785 crore during the quarter ended March 2018. The revenue from sale of crude oil surged 23% to Rs.2,466 crore in the quarter while revenue from natural gas segment increased 8.21% to Rs.395 crore in the same period. Meanwhile, the company’s expenses were up by 15% to Rs.2,605 crore.
- The company’s profit after tax (PAT) for the full year 2017-18 was Rs.2,667.93 crore compared to a PAT of Rs.1,548.68 crore during 2016-2017. In terms of crude oil production, OIL recorded a growth of nearly 4% in FY 2017-18 to 3.394 mt as compared to 3.277 mt during FY 2016-17. Oil India’s board also proposed a final dividend of Rs.1 per share for the FY 2017-18 on a post bonus equity share capital.
- Earlier in March 2018, the Government of Mozambique gave approval to OIL for the Development Plan for Golfinho-Atum natural gas field in Rovuma Offshore Basin in the Area 1 block. The company also received its first ever patent from European Patent Office (EPO) for an invention titled ‘A method for preventing wax deposition in oil wells with packers’. The method develops innovative solutions to oilfield exploration and problems related to production. The company has also filed few other patent applications in recent years.
Oil India Ltd. Stock Trends in 2018
- On 1 January 2018, the opening price of the stock on NSE was Rs.249. The price saw a marginal change throughout the month. The scrip was not eventful in the month of February and did not showcase a drastic change in the price in February as well. However, the stock of Oil India Ltd. started falling in March where it was at Rs.217 by the end of the month.
- In the month of April, the stock regained strength and finished the month at Rs.230. The price of the stock continued to grow in May as the company announced the board meeting and decided on the dividend. The company also announced an increase in Q4 net profit. However, the stock declined in the month of June and finished the month at Rs.209.
Oil India Ltd. Stock Trends in 2016 and 2017
- The opening price of Oil India Ltd. stock on 1 January 2018 was Rs. 195 on NSE. As the Board of Directors declared the interim dividend, the scrip started to fall and was down by around 20 points by the end of the month. The stock price continued to fall in February and was at Rs.159 at the end of the month. The month of March and April, the price remained at that level over the course of the month without undergoing any major fluctuations.
- In May, the scrip gained momentum and was at Rs.175 by the end of the month. However, the price of the stock saw a marginal change in June. Mr. Utpal Bora was appointed as the Chairman and Managing Director of the company in July. The scrip performed well in July and ended the month at Rs.185. In the month of August, the price of the stock crossed the Rs.190 mark.
- In September and October, the stock price of Oil India Ltd. recorded hardly any surge and was pretty flat for these two months. The company issued bonus in November, that helped it reach a 52-week high at Rs.220. Due to a hike in the fuel prices, the Oil India Ltd. stock price gained a little and ended the month at Rs.221.
- On 2 January 2017, the opening price of the stock was Rs.226 on NSE. By mid January, the price had crossed the Rs.320 mark and had seen a big downfall of about 92 points in a single day. By the end of February 2017, the price of the stock was at Rs.219. The month of March saw the scrip increase by just 10 points and changed marginally in April. The stock ended the month of April at Rs.215.
- The scrip was pretty stable in the month of May and did not see a major change. However, the stock fell by over 30 points in June and ended the month at Rs.177. In July, the stock gradually picked and and increased by around 20 points. The month of August was also stable for the stock as it saw a marginal change in the scrip. By the end of the month, the scrip was at Rs.195.
- In September, the price of the stock surged by over 35 points as the it ended the month at Rs.230. The scrip did not record a major change in the price in the month of October. In November, the company announced a jump in net profit that resulted to an increase in the scrip by few points. By the end of December 2017, the price of Oil India Ltd. stock was Rs.250.
Should you invest in Oil India Ltd?
- Oil India Ltd. has delivered a huge increase in net profit for FY 2017-208. The company has been expanding at a faster pace in international markets and has also been involved in few important mergers and acquisitions. It is looking forward to develop new solutions in the exploration and production services.
- The share price of Oil India Ltd. has showcased a stable behavior for couple of years. The scrip has not witnessed a drastic high or low in the price change. If you are looking to invest in the long term, you can go for the Oil India Ltd. stock. However, it is strongly recommended that you conduct your own research before investing your hard-earned money in the stock market, as it is subject to volatility.
Oil India Ltd. provides different exploration and production (E&P) related services. It holds 26% equity in Numaligarh Refinery Limited. Oil India Ltd. transports crude oil, produces liquefied petroleum gas, offers pipeline services, as well as various exploration and production related services. As per the company website, the Government of India holds 66.13% of the total Issued & Paid-up Capital of the company. Meanwhile, the balance 33.87% of the equity capital is held by public, mutual funds, corporate, banks, resident individuals etc. OIL has more than 1 lakh sq km of PEL/ML areas for its E&P activities, majority of which is in the Indian North East. This accounts for its whole crude oil production and majority of gas production. Meanwhile, Rajasthan contributes 10% of its total gas production.
In the E&P sector, in India, OIL has signed Production Sharing Contracts (PSCs) with private companies like Hindustan Mittal Energy Ltd (HMEL), Geo Global Resources (GGR), Essar Oil, Hindustan Oil Exploration Company (HOEC), Geo-Enpro Petroleum, and others. Along with India, OIL has participating interest in blocks in more than nine countries internationally such as Nigeria, Russia, Yemen, Bangladesh, USA, Libya, Gabon, Venezuela, and Mozambique.
History of the company
Oil India Ltd. was incorporated on 18 February 1989, following which it became a joint venture between Burmah Oil Company Ltd UK. and the Government of India, in 1961. The company became a wholly-owned Government of India enterprise in 1981. In 2005, the company entered into a memorandum of understanding (MoU) with Indian Oil Tanking Ltd, to take up pipeline and related projects in India as well as internationally. In April 2010, Oil India Limited was conferred the Navratna status by the Government of India.
Management of the company
Mr. Utpal Bora - Chairman and Managing Director
Mr. Utpal Bora was appointed as the Chairman and Managing Director of Oil India Limited (OIL) in July 2016. With an experience of more than 33 years in the E&P sector, Bora has served in various capacities at ONGC Ltd. and has been involved in activities related to well control, well testing, artificial lift, reservoir management and so on. He is credited with turning around ONGC’s highest producing onshore Asset. Bora holds the degree of Bachelor of Technology in Petroleum Engineering from ISM, Dhanbad and has completed a Leadership Development Programme from ISB, Hyderabad.
Listings in NSE, BSE, and Indices
The stock of Oil India Ltd. is available for trading on the two major stock exchanges of India - The National Stock Exchange Limited (NSE) and Bombay Stock Exchange (BSE).
Sector: Oil drilling and exploration
The company forms a part of important indices like:
- Nifty 100
- Nifty 500
- Nifty 200
- Nifty Next 50
- S&P BSE 500
- S&P BSE 200
- S&P BSE Energy
- S&P BSE Oil and Gas
Plot No. 19, Near Film City,
Sector 16A, Noida - 201301
Phone: 0120 - 2488333 to 2488347 (EPABX)
Fax: 0120 - 2488310
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