IOC posts Rs. 3,121-cr net in Q2 on better refining, petrochem margins
New Delhi   28-Oct-2016

The Indian Oil Corporation on Thursday reported a net profit of Rs. 3,121 crore for the second quarter ended September 2016 as against a net loss of Rs. 450 crore in the same quarter last fiscal.

This turnaround in bottom-line performance could be largely attributed to the lower inventory loss and also improved refining and petrochemical margins for the quarter under review, B Ashok, Chairman, IOC, told reporters here. Ashok said the inventory loss for the quarter under review stood at Rs. 686 crore compared with an inventory loss of Rs. 5,134 crore in the same quarter last fiscal.

The total income for the second quarter ended September 2016 stood at Rs. 1,00,274 crore (Rs. 97,300 crore). Ashok also said the board did not declare any interim dividend for 2016-17 at its meeting on Thursday.

The second quarter net profit of Rs. 3,121 crore was, however, much lower than the net profit of Rs. 8,269 crore in the first. The first quarter bottom-line was aided by large inventory gains to the tune of Rs. 7,479 crore.

For the second quarter of 2016-17, IOC’s product sales volumes, including exports, was 19.698 million tonnes. The refining throughput was 15.635 million tonnes and throughput of IOC’s countrywide pipeline network was 20.974 million tonnes. The gross refining margin for the second quarter was $4.32 per barrel compared with $0.90 per barrel in the same quarter last year.

Half-year
For the six months ended September 2016, IOC has reported a net profit of Rs. 11,391 crore. This was nearly double the net profit of Rs. 6,141 crore recorded in same period last year.

The total income from operations for the first half of 2016-17 declined marginally to Rs. 2,07,475 crore (Rs. 2,11,043 crore). Despite better physicals, the decrease is purely because of fall in international prices, according to Ashok.

IOC sold 41.076 million tonnes of products, including exports, during the first six months of 2016-17. The gross refining margin during April-September 2016 was $7.19 per barrel compared with $5.76 per barrel in the same period last year.

× “Our refining throughput for H1 2016-17 was 31.734 million tonnes, and the throughput of the Corporation’s countrywide pipelines network was 42.411 million tonnes during the same period,” Ashok said.

Ashok said IOC will add 1,200 retails outlets this fiscal. He also expressed confidence over sustaining the first half bottom-line performance in the second half, and pointed out that developments on the Paradip refinery will bolster its overall financial performance.