IOC Q1 loss rises 9% to Rs 3,719 cr
New Delhi   11-Aug-2011

Mr. R S Butola,
Chairman,
IndianOil
Despite higher refining margins in the first quarter of this fiscal, state-owned IndianOil reported a 9 per cent rise in net losses at Rs 3,718.7 crore, mainly on account of selling diesel, LPG and kerosene below cost.

IOC chairman RS Butola said that the company has suffered a net under-realisation of Rs 7,673 crore in the June quarter, compared with an under-recovery of Rs 7,343 crore in the same period a year ago. This is after upstream firms ONGC, Oil India and Gail India giving Rs 7,932 crore as their share of oil subsidy and the government agreeing to give a support of Rs 8,201 crore as budget support for selling fuel at state-set prices, he said. Butola added that only a significant reduction in global crude price would warrant a cut in the retail price of petrol: “If there is a significant reduction in global crude oil price, then there could be a cause for a review of our price.”

IOC’s gross sales jumped 28 per cent in the first quarter to Rs 99,757 crore and net sales jumped 29 per cent to Rs 92,100 crore. Gross refining margins improved to $4.71 a barrel in the first quarter of this fiscal from $3 barrel the same time a year ago. Due to cash flow problems arising out of loss making retail operations, interest payments almost doubled to Rs 1,038 crore in Q1, compared with Rs 571 crore in the same period a year ago.