IndianOil and Hindustan Petroleum Corporation have decided to postpone their third quarter results, anticipating a subsidy announcement that will help them post better numbers, against market expectations of a big loss.
IndianOil was scheduled to announce its results today, while HPCL was expected to declare its result on January 27. Though Bharat Petroleum Corporation plans to declare its Q3 numbers on January 31, it may follow the other two companies. Listed companies have to declare their quarterly results within 45 days from the end of the quarter. All these companies, therefore, have to declare their numbers by February 14.
“We are expecting a subsidy announcement from the government for our under-recoveries. We will wait till February 7 for the subsidy, as we need to intimate the stock exchanges about results at least a week in advance," said a senior HPCL executive.
The petroleum ministry has sought Rs. 10,000 crore from the finance ministry to compensate for Q3 losses of oil companies, said a ministry official. However, an IndianOil executive said the results have been postponed due to "unforeseen circumstances".
Of the estimated Rs. 15,750-crore loss incurred by these three companies on sale of subsidised diesel, kerosene and domestic LPG, upstream companies, including GAIL India, will be bearing Rs. 5,198 crore for the third quarter. Pending the release of the balance amount, these companies are set to post heavy losses.
Currently, these companies are incurring an under-recovery of Rs. 6.80 per litre on diesel, Rs. 18.66 per litre on kerosene and Rs. 366 per cylinder on domestic LPG. “Q3 will see net loss if compensation is not there.” IOC Chairman B M Bansal said last week. The company lost about Rs. 8,500 crore on selling diesel, domestic LPG and kerosene below cost in the October-December quarter. Of this, one-third has been compensated by upstream companies.