IndianOil energises quarterly profit by 85% to Rs 3.72K crore
New Delhi   26-May-2017



Indian Oil Corp, the nation's biggest company, on Thursday reported 85 per cent jump in the March quarter net profit on higher refining margin and inventory gains.

IOC's net profit for the January-March quarter at Rs 3,720.62 crore (Rs 7.85 per share), was higher than Rs 2,005.89 crore (Rs 4.23 a share) in the same period of the previous fiscal. "The profit was higher mainly because of inventory gains, higher refining margins and operational efficiencies," IOC Chairman B Ashok told reporters here.

The nation's biggest refiner earned $8.95 on turning every barrel of crude oil into fuel in the fourth quarter of 2016-17 fiscal as compared to a gross refining margin (GRM) of $2.99 a barrel in the same period of previous fiscal. The company had an inventory gain of Rs 2,634 crore in the fourth quarter as compared to an inventory loss of Rs 3,417 crore in the same period of 2015-16 financial year.

Inventory gain happens when a company buys crude oil at a given price but by the time it is able to process it and convert it into fuel, the prices move up. In the reverse situation, losses happens. "Without the inventory gains, GRM in Q4 was $7.17 per barrel as compared to a GRM of $6.23 a barrel in the year- ago-period," IOC Director (Finance) A K Sharma said. Revenue from operations were up 24 per cent to Rs 1,22,285.30 crore. Its refineries turned 17.1 million tonne of crude oil into fuel during the quarter as opposed to a throughput of 15.01 MT in the previous fiscal. Ashok said IOC posted its highest ever annual net profit or Rs 19,106.40 crore in 2016-17.

"We sold a record 83.49 MT of products, including exports, during 2016-17. Our refinery throughput too was at an all time high of 65.19 MT (56.69 MT in 2015-16)," he said. GRM in 2016-17 was $7.77 per barrel as compared to $5.06 a barrel in 2015-16. He said the company had a good showing on its petrochemical and natural gas business as well, clocking highest ever sale of 2.57 MT and 3.79 MT respectively.

"We exceeded overall capex performance target of Rs 15,395 crore for the year 2016-17 by over 30 per cent," he said adding the company plans to invest Rs 20,737 crore during the current fiscal. IOC, he said, continues to expand its fuel retailing business with a focus on automation and has also drawn plans to raise capacity of its key refineries at Panipat, Mathura, Koyali and Panipat.

The company will commission its Ennore liquefied natural gas (LNG) import terminal at Ennore in Tamil Nadu in mid-2018.