IOC Q1 loss widens to Rs. 3,719 cr
New Delhi   11-Aug-2011

Mr. R S Butola,
Chairman,
IndianOil
Increased under-recoveries and higher interest outgo further widened IndianOil's losses in June quarter as the State run oil marketing company announced a net loss of Rs. 3,719 crore compared to Rs. 3,388 crore in the April-June quarter of 2010-11.

“IOC has a net loss of Rs. 3,388 crore in the AprilJune quarter of 2010-11, which can be attributed to a higher number of unmet under-realisation on diesel, domestic LPG and kerosene and higher interest outgo,“ said IOC Chairman R S Butola while announcing the June quarter result.

The company lost Rs. 23,806 crore on selling diesel, domestic LPG and kerosene at Government controlled rates in Q1.

“As against Rs. 23,806 crore losses, we have got Rs. 7,932 crore by way of upstream assistance and another Rs. 8,201 crore from the Government,” added Butola.

Butola also said that under-recoveries in June quarter increased to Rs. 7,673 crore from Rs. 7,343 crore in the same period a year ago, while it had to pay Rs. 467 crore more on account of higher interest on its borrowings.

“IOC had an inventory loss of Rs. 900 crore. The company had crude inventory when the Government on June 26 cut customs or import duty to zero from 5 per cent, leading to the loss in revaluation,“ he said.

IOC earned $4.71 on turning every barrel of crude oil into petroleum product in the April-June quarter a opposed to a gross refining margin of $3 per barrel an year ago. Turnover rose abou 28 per cent to Rs. 99,757 crore in Q1.

“The company's borrowing have gone up by about Rs. 15,000 crore in Q1 Rs. 52,734 crore to Rs. 67,458 crore,“ said IOC Finance Director PK Goyal.

The company also said that it has stated paying it debt to Iron for its oil import. “While we have already paid 73 million euros las week, we would pay out the rest of 380 million euros in the next 15-20 days,“ said Goyal.

“We have no cargo in August but we are expecting one cargo of about 1,20,000 tonnes of Iranian oil in September,“ he added.

The outstanding accumulated after RBI in December scrapped a long standing mechanism of paying for Iranian oil through a clearing house system run by regional central banks last December.