IOC posts net loss of Rs 961 cr in third quarter

The company had posted a net profit of Rs 3,332 cr last year

State-run Indian Oil Corporation (IOC) posted a net loss of Rs 961.45 crore for the third quarter of FY14 ended December 31, owing to the non-payment of the oil subsidy by the government.

During the corresponding quarter of the previous financial year, the company had posted a net profit of Rs 3,332 crore. "There was a higher absorption of under-recoveries on diesel, petrol and cooking gas. The decline in profit is mainly on account of net under realisation of Rs 7,193 crore during the current year, compared to over recovery of Rs 408 crore received during the October-December quarter of the previous financial year,” IOC chairman R S Butola said.

Of the overall under-recovery loss of Rs 20,700 crore that the company suffered during the quarter, the government paid Rs 5,200 crore and upstream majors paid Rs 8,300 crore. The company has suffered a net under realisation of Rs 8,818.15 crore.

“This led to an unmet under-recovery amount of about Rs 7,200 crore. Had this been met, we would have posted profit during the quarter. We have made an exchange gain of Rs 1,133 crore during the quarter due to strengthening of rupee,” he added.

During the financial year till now, the overall under-recovery stood at Rs 52,500 crore, out of which government paid Rs 18,600 crore and upstream contribution stood at around Rs 25,047 crore.

For the first nine months of the financial year also, the company posted Rs 2,370.76 crore. Had the government compensated its subsidy dues, the company said it would have posted a net profit of Rs 6,500 crore during the nine-month period.

At present, oil marketing companies are suffering a loss of Rs 7.39 a litre on sales of diesel, Rs 35.76 a litre on kerosene and Rs 656 a cylinder on cooking gas.  

Meanwhile, the company’s net sales for the third quarter of the financial year zoomed marginally by 0.8 per cent to Rs 117,671.95 crore, as against Rs 116,699.74 crore during the October to December quarter of FY13.

Meanwhile, the average gross refining margin for the period of April to December stood at $4.97 a barrel, compared to $3.11 a barrel during the first nine months of the previous financial year.