IOC profit hits record high of Rs 21,836 crore in FY 21

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May 20, 2021 1:00 AM

The company also announced the board’s approval to expand the capacity of Guwahati refinery to 1.2 million tonne per annum (MTPA) from 1 MTPA.

These projects, he said, will enable large-scale direct and indirect employment opportunities during the peak construction period and later for the operation of these facilities.These projects, he said, will enable large-scale direct and indirect employment opportunities during the peak construction period and later for the operation of these facilities.

Indian Oil Corporation (IOC) on Wednesday reported a net profit of Rs 21,836 crore on a standalone basis for the fiscal ended March 31, which is nearly 17 times higher from the Rs 1,313 crore profit posted a year ago.

This is the highest annual profit ever reported by the state-run oil refining and marketing company. It attributed the increase in profit to inventory gains, stemming from fluctuations in global oil prices and rising sales of high-margin petrochemical products.

The company also announced the board’s approval to expand the capacity of Guwahati refinery to 1.2 million tonne per annum (MTPA) from 1 MTPA.

As retail prices of petroleum products are mapped with international rates, rise of global oil prices during FY21 meant that by the time IOC sold its products after processing crude, retail rates had increased. IOC’s gross refining margin, including inventory gains, was $5.64/barrel against the margin of $0.08/barrel in FY20.

IOC sold 81 MT of petroleum products in the fiscal, marking an annual drop of 9.7%, mainly due to the lockdown to contain the outspread of the coronavirus. IOC achieved highest ever petrochemical sales of 2.5 MT in FY21, up 20% annually. The petrochemicals segment reported a turnover of Rs 19,564 crore, 24% more than FY20.

“Our refining throughput for the FY21 was 62.351 MT and the throughput of the corporation’s countrywide pipelines network was 76.019 MT during the year,” IOCL chairman SM Vaidya, said.

The company’s revenue in the period fell 8.9% annually to Rs 5.19 lakh crore, while expenses dropped by a sharper 12.8% to Rs 4.89 lakh crore. Finance cost fell 48% to Rs 3,093.9 crore, adjusting foreign exchange gains of Rs 1,154.4 crore. IOC’s board on Wednesday has also declared an interim dividend of Rs 1.50 per equity share.

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