IOC’s loss widens to Rs 3,719 crore in Q1
New Delhi   11-Aug-2011

IndianOil on Wednesday reported less than expected losses for 2011-12 April-June quarter. IOC posted a loss of Rs 3,719 crore for the first quarter of the current financial year against Rs 3,388 crore in the same quarter previous year.

A Bloomberg survey estimated IOC to report loss of Rs 9,300 crore. “Major reason (for increase in net loss) has been that we have had a higher number of unmet under-realisation on diesel, domestic LPG and ker­osene,” IOC chairman RS Butola told reporters. “The unmet fuel loss in Q1 increased to Rs 7,673 crore from Rs 7,343 crore in the same period a year ago.”

During April-June, IOC lost Rs 23,806 crore for selling diesel, kerosene and domestic cooking gas below market cost. Of this, government compensated Rs 8,201 and ONGC, OIL and Gail contributed another Rs 7,932 crore.

IOC’s shares slid nearly 4.6 per cent in the past one year as against 16 per cent dip in the benchmark Sensex. But IOC paid additional Rs 467 crore as interest on its borrowings. The refiner’s debt increased from Rs 52,734 crore to Rs 67,458 crore in the first quarter.

Also, it met an inventory loss of Rs 900 crore because government reduced import duty to zero from five per cent on June 26. This lead loss in revaluation.

IOC paid Iran 73 million euros via Turkey’s Halkbank for crude oil imports. It would also clear another ¤380 million outstanding crude import bill this month. The company is expecting to receive one cargo of Iranian oil in September.