Oil India and NRL Collaborate to Expand Petroleum Product Transportation

By siliconindia  |  Thursday, 23 May 2024, 12:43:40 PM IST

Oil India and NRL Collaborate to Expand Petroleum Product Transportation
Oil India Limited (OIL) recently disclosed a pivotal development, having inked a long-term accord with its subsidiary, Numaligarh Refinery Limited (NRL). This agreement pertains to the transportation augmentation of petroleum products via the Numaligarh-Siliguri Product Pipeline (NSPL), following the completion of the Numaligarh Refinery Expansion Project. Consequently, OIL shares experienced a marginal uptick of 0.13% in trading.
Presently, OIL facilitates the evacuation of 1.72 million metric tonnes per annum (MMTPA) of petroleum products through NSPL, culminating at NRL’s marketing terminal in Siliguri. This pipeline serves as a critical conduit for NRL, facilitating product distribution to demand hubs in eastern and northern India. The newly forged agreement spans 25 years from the commencement of augmented pipeline operations.
NRL is actively executing the Numaligarh Refinery Expansion Project (NREL) to bolster its capacity from 3 to 9 MMTPA, aligning with the Hydrocarbon Vision 2030. In a significant move in December 2020, OIL and NRL entered a memorandum of understanding (MoU), with OIL committing investments to boost NSPL’s capacity to 5.50 MMTPA through the installation of additional booster pump stations and associated infrastructure.
Recent financial disclosures showcased OIL's resilience, with an 18% year-on-year (YoY) surge in net profit for the fourth quarter of FY24, totaling Rs 2,333 crore. However, fiscal performance for the entire year portrayed a mixed picture, with revenue from operations dipping by 12% to Rs 36,304 crore, and total income declining by 10% to Rs 37,646 crore. Net profit for FY24 witnessed a notable downturn, plummeting by 29% to Rs 6,980 crore.
In a bid to bolster investor confidence, the company announced a bonus issue of one equity share for every two existing shares held. Additionally, the board recommended a final dividend of Rs 3.75 per equity share (pre-bonus).
Despite the financial fluctuations, OIL's stock has been on an upward trajectory, surging by nearly 72% since the year's onset and marking an impressive 141% increase over the past year. This surge underscores investor optimism regarding the company's strategic initiatives and future prospects.

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