IOC net up 32%, seeks hike in oil price

Written by Energy Bureau | New Delhi, Oct 30 | Updated: Oct 31 2007, 09:58am hrs
Indian Oil Corporation (IOC) has posted a 32.39% increase in net profit at Rs 3,817.75 crore for the second quarter of the current fiscal against Rs 2,883.59 crore for the corresponding period last year.

Total income of the company increased by 1.80 % to Rs 58,457.23 crore for the quarter under review compared with Rs 57,418.49 crore for the same period last year. The company also declared a final dividend of Rs 13 per share and an interim dividend of Rs 6 per share for the year ended March 31.

For the six months periodApril to September 2007, IOC posted a 25 % increase in net profit to Rs 5,286.16 crore and a revenue rise of 3.9 % at Rs 112,496.60 crore. Refinery margin during the period was $8.44 per barrel as against $3.13 in the corresponding period last year. IOCs shares today gained 4.3 % to Rs 467.25 on the BSE.

After considering Rs 6,363.25 crore oil bonds received from the government and Rs 4,966.08 crore discount received as upstream assistance from ONGC, GAIL and OIL, the company did make a case for increasing the prices of petroleum productspetrol, diesel, domestic LPG and PDS kerosene. Spiraling global oil prices have put enormous burden and may result in a revenue loss of over Rs 8,500 crore this fiscal, IOC chairman and managing director, Sarthak Behuria told reporters on Tuesday.

The government had taken a decision of sharing the burden of rising international oil prices equally between the oil companies, government and the consumers. I want the burden sharing mechanism to be implemented... let the consumers pay, Behuria said.

While the government and oil companies were bearing their share of the burden, the consumers have so far been spared from any hike in fuel prices despite crude oil touching a historic high of $93 per barrel. The Indian basket of crude oil is at an all time high of $85.87 per barrel.

Public sector oil firms are currently losing Rs 3.90 per litre on petrol, Rs 6.22 a litre on diesel, Rs 15.99 per litre on kerosene and Rs 174.17 on every 14.2-kg LPG cylinder. These losses would widen to Rs 4.94 a litre on petrol, Rs 6.50 per lite on diesel, Rs 16.42 a litre on kerosene and Rs 207 per cylinder on LPG from November 1.

During April-September, IOC suffered a net under-realisation on fuel sale of Rs 3,507.74 crore (Rs 3,327.97 crore last year) after considering oil bonds and discounts received from ONGC, GAIL and OIL.

ONGC posts 22% rise on global crude

The upsurge in global crude has helped state-owned ONGC post 22% rise in its net profit for the second quarter which ended September 30. The net profit of ONGC is after paying Rs 3,799 crore towards subsiding cooking fuel pricesLPG and Kerosene.

ONGCs net profit rose to Rs 5,097.48 crore in July-September from Rs 4,173.98 crore in the same period a year ago, a company release said here. Sales rose 9.5 % to Rs 15,413.92 crore as compared to Rs 14,068.55 crore in Q2 of 2006-07 fiscal.

ONGC got $55.93 a barrel for crude oil it produces after giving discounts to state-refinersIndian Oil, BPCL and HPCL. For the six months period, ONGC posted a net profit of Rs 9,708 crore in April-September on a turnover of Rs 29,191 crore. In first half of 2006-07, the company had recorded Rs 8,293 crore net profit on a sales of Rs 28,823 crore.