State-owned Oil India Ltd on Thursday reported more than doubling of its December quarter net profit on the back of one-time gains from settling tax matters. Net profit in October-December at Rs 903.69 crore was 122 percent higher than Rs 406.39 crore in the same period a year back, the company said in a statement.

In notes to the financial statement, it said the company has credited Rs 1,158.54 crore ”based on final settlement orders” after the company opted for the tax dispute settlement scheme, Vivad Se Vishwas. ”The company has settled all its pending income tax disputes from Assessment Year 2003-04 to AY 2016-17 under the said scheme,” it said.

But for this one-time gain, the profit should have been lower as the company realised a lower price for oil and gas it sold in the quarter. It got USD 44.09 for every barrel of crude oil in the third quarter of the current fiscal as compared to USD 63.27 a barrel realisation a year back.

Gas price was also lower at USD 1.79 per million British thermal unit (mmbtu). In the nine months ended December 31, net profit was 46 per cent lower at Rs 894.03 crore.

”Reduction in average crude oil price for the 9-month 2020-21 to USD 38.98 per barrel from USD 63.62/bbl for 9M 2019-20. The decrease in price has led to decrease in turnover by Rs 2,838 crore and profitability by Rs 1416 crore during 9M 2020-21,” the statement said. Similarly, a reduction in average natural gas price to USD 2.19 per mmbtu from USD 3.54 led to decrease in turnover by Rs 625 crore and profitability by Rs 425 crore, it said.

Also, the company booked Rs 378.93 crore as the cost of controlling the blowout at Baghjan oilfield in the Tinsukia district of Assam. Crude oil production for Q3 remained flat at 0.748 million tonnes while natural gas output was marginally lower at 673 million standard cubic metres as compared to 697 mmscm.

OIL declared an interim dividend of Rs 3.50 per share for FY 2020-21.