Resource Digest - - GAS -

In­dian Oil Corp, the na­tion’s big­gest oil com­pany, re­cently re­ported 2.5-fold jump in its June quar­ter net profit to Rs 6,436 crore as re­fin­ing mar­gins rose to 7-year high. It re­ported net profit of Rs 6,435.70 crore, or Rs 26.51 per share, for April-june quar­ter of the cur­rent fis­cal, com­pared with Rs 2,522.94 crore, or Rs 10.39 a share, in the year-ago pe­riod.

“Vari­a­tion in profit is ma­jorly due to higher re­fin­ery and petro­chem­i­cal mar­gins,” IOC chair­man B Ashok said. It earned $10.77 on turn­ing ev­ery bar­rel of crude oil into fuel in the first quar­ter of this fis­cal, com­pared with a gross re­fin­ing mar­gin (GRM) of $2.25 per bar­rel.

“GRM are the high­est since June quar­ter of 2008-09 fis­cal when we clocked $16.81 per bar­rel mar­gin,” he said.

Re­fin­ery through­put was 5.5% higher at 13.568 mil­lion tonne. “Our re­fin­ery mar­gin in the quar­ter was Rs 6,521 crore as com­pared with Rs 705 crore in the cor­re­spond­ing pe­riod of last fi­nan­cial year. Pe­tochem mar­gins rose to Rs 1,875 crore from Rs 719 crore,” he said.

GRM was higher be­cause of in­ven­tory gain of $4.78 per bar­rel, he said. Ashok said GRM were high be­cause of in­ven­tory gain as well as bet­ter op­er­a­tional per­for­mance.

There was a to­tal of Rs 3,218 crore of in­ven­tory gain, re­sult­ing from val­u­a­tion of oil ris­ing be­tween the time it is bought, pro­cessed and sold.

“There was an in­ven­tory gain of Rs 2,395 crore on crude oil in the first quar­ter as com­pared to an in­ven­tory loss of Rs 426 crore a year ago. Also there was an in­ven­tory gain of Rs 823 crore on prod­uct, up from Rs 589 crore in the first quar­ter of last fis­cal,” he said. He said IOC got most of the rev­enue loss on sale of pub­lic dis­tri­bu­tion sys­tem kerosene and sub­sidised cook­ing gas com­pen­sated by the gov­ern­ment (Rs 1,732.95 crore) and up­stream oil firms such as Oil and Nat­u­ral gas Corp Ltd (ONGC) (Rs 878.84 crore).

IOC’S bor­row­ings have come down to Rs 52,519 crore as on June 30 from Rs 55,247 crore as on March 31, he said.

To­tal in­come from oper­a­tions dropped 19.2% year on year (up over 7% se­quen­tially) to Rs 1.01 lakh crore due to fall in crude oil prices. Other in­come dur­ing the June quar­ter plunged 80% to Rs 362.4 crore while tax ex­penses shot up 169% to Rs 2,764.2 crore com­pared to same quar­ter last year.

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