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.
Oil India profit drops 8.9% in first quarter
Oil India Ltd's net profit for the first quarter of fiscal 2015-16 dropped 8.9 per cent to Rs. 775.42 crore. In the same quarter last year, the company reported a net profit of Rs. 851.57 crore.
The net profit drop came even as its turnover increased 8.7 per cent during the quarter to Rs. 2,882.64 crore against Rs. 2,649.84 crore. Oil India said in a statement that the lower profit was on account of higher write-off of dry wells and provisions for unfinished work programme.
“Provision for unfinished work programme was Rs. 50.6 crore during the first quarter compared to Rs. 0.30 crore in the same quarter last year. Write-off on dry wells was Rs. 56.55 crore compared to Rs. 9.09 crore in the same quarter last year,” said UP Singh, Interim Chairman and Managing Director.
He added, “No company would like to provision for unfinished work programme but that is the case with everyone in the country today. Our focus is to increase production from our aging and declining fields while trying to monetise the new discoveries even though they are small.”
The company's net realisation for crude oil after accounting for subsidy provision was $57.42 a barrel during the first quarter. This was higher than $52.35 a barrel in the same quarter last year. Recently, the company's shares closed 0.52 per cent lower on the BSE at Rs. 449.05. The results were announced after market hours.
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.
Oil India profit drops 8.9% in first quarter
Oil India Ltd's net profit for the first quarter of fiscal 2015-16 dropped 8.9 per cent to Rs. 775.42 crore. In the same quarter last year, the company reported a net profit of Rs. 851.57 crore.
The net profit drop came even as its turnover increased 8.7 per cent during the quarter to Rs. 2,882.64 crore against Rs. 2,649.84 crore. Oil India said in a statement that the lower profit was on account of higher write-off of dry wells and provisions for unfinished work programme.
“Provision for unfinished work programme was Rs. 50.6 crore during the first quarter compared to Rs. 0.30 crore in the same quarter last year. Write-off on dry wells was Rs. 56.55 crore compared to Rs. 9.09 crore in the same quarter last year,” said UP Singh, Interim Chairman and Managing Director.
He added, “No company would like to provision for unfinished work programme but that is the case with everyone in the country today. Our focus is to increase production from our aging and declining fields while trying to monetise the new discoveries even though they are small.”
The company's net realisation for crude oil after accounting for subsidy provision was $57.42 a barrel during the first quarter. This was higher than $52.35 a barrel in the same quarter last year. Recently, the company's shares closed 0.52 per cent lower on the BSE at Rs. 449.05. The results were announced after market hours.
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