India’s largest refiner Indian Oil Corporation (IOC) on Friday reported a 33.06% drop in net profit to Rs 6,285.35 crore for the January-March quarter of FY15.
India’s largest refiner Indian Oil Corporation (IOC) on Friday reported a 33.06% drop in net profit to Rs 6,285.35 crore for the January-March quarter of FY15 against Rs 9,389.85 crore in the same quarter last year. The figure still exceeded Street’s estimate of Rs 4,500 crore.
In Q4 of FY14, IOC received Rs 7,735 crore towards oil subsidy compensation pertaining to the previous quarters, said B Ashok, chairman, IOC.This, he said, was the reason for the drop in net profit.
“Without this back-quarter compensation, Q4 2013-14 net profit would have been Rs 1,655 crore,” he added.
However, sales of the PSU dropped by 30.57% in Q4 FY15 to Rs 93,491.55 crore against Rs 1,34,668.76 in the same quarter previous year. The fall is attributable to a reduction in fuel cost, which is aligned with global markets.
“The year was indeed very challenging but we have been able to keep our performance up, our spirits up and our service orientation up,” Ashok said, adding that the benchmark Brent fell from a high of $115.32/ barrel in June to $45.22 in January.
IOC reported a gross refining margin (GRM) of $8.77/barrel in Q4 FY15 against $2.17/barrel in the same quarter last year.
The Maharatna saw a loss (under-recovery) of Rs 3,221 crore during January-March FY15. Of this, Rs 2,933 crore was compensated by the government while RS 276 crore was given by upstream companies.
For the complete year FY15, IOC reported a net profit of Rs 5,273 crore, lower than Rs 7,019 crore in the previous year.
“We had an inventory loss of Rs 15,600 crore in 2014-15 against an inventory gain of Rs 3,990 crore in the previous year,” Ashok said.
IOC refineries processed 53.6 million tonnes of crude in FY15 against 53.1 million tonnes in the previous fiscal. At the same time, fuel sales rose to 71.8 million tonnes in FY15 against 70 million tonnes in FY15. The rise in fuel sales were led by petrol (8.3 million tonnes) and diesel (34.5 million tonnes).
The PSU firm added 950 retail outlets to take the total number of petrol pumps to 18,175 and another 6,230 kissan seva Kendras in rural areas.
IOC purchased 52.4 million tonnes of crude oil in FY15 worth Rs 1,94,600 crore, higher than the 51.4 million tonnes it bought in FY14 for Rs 2,41,300 crore. In FY13, IOC procured 50.8 million tonnes of crude oil for 2,20,100 crore.
Paradip refinery to be fully functional by October
The company’s greenfield refinery at Paradip in Odisha, which started processing crude in March, would be completely functional by October. The 15 million tonne per annum (mtpa) project is poised to be the most advanced
refinery in the country and boost IOC’s gross refining margin.