IndianOil posts net loss of Rs 3,719 cr

Indian Oil Corporation on Wednesday reported net loss of Rs 3,719 crore for the first quarter due to unmet losses of Rs ,673 crore from the government. The net loss is up by 10 per cent over last year’s corresponding loss of Rs 3,388 crore.

Chairman R S Butola attributed the loss to higher unmet under-realisation on diesel, domestic LPG and kerosene. IOC lost Rs 23,806 crore on selling diesel, domestic LPG and kerosene at government controlled rates in the first quarter. Against this, it got Rs 7,932 crore by way of upstream assistance and another Rs 8,201 crore from the government.

Net sales for the quarter rose 29 per cent to Rs 92,100 crore.

The unmet fuel loss in the quarter increased to Rs 7,673 crore from Rs 7,343 crore in the same period a year ago, he said. Also, the company had to pay Rs 467 crore more during this period on account of higher interest on its borrowings. Besides, IOC had an inventory loss of Rs 900 crore as the government removed customs duty on crude oil. Gross refining margins for the quarter rose to $4.71 per barrel compared to $3 in same quarter last year.

The company is expected to perform better in the current quarter since the full impact of price rise in diesel, kerosene and LPG will accrue. Currently, the company is losing Rs 6.06 on every litre of diesel, Rs 23.74 on per litre of kerosene and Rs 247 on every LPG cylinder.

PETROL PRICE
Petrol price decline could still be away as global prices continue to swing both ways.

Butola said the company is monitoring the situation and cannot comment if price will be cut. “If there is a significant reduction from current levels, there would be a cause to review. So far, a sharp reduction (in crude oil) has been seen only on one day. Thereafter, it continued to move up and down,” he said.