IOC Q1 loss extends to Rs 3,179 cr

State-owned Indian Oil Corporation (IOC) today reported widening of net loss in first quarter ended June 30 to Rs 3,719 crore as government made good only a third of the losses it made on selling auto and cooking fuel at state controlled rates.

IOC, the nation's largest oil firm, had reported a net loss of Rs 3,388 crore in the first quarter of 2010-11, company Chairman RS Butola said.

"Major reason [for widening of net loss] has been that we have had a higher number of unmet under-realisation on diesel, domestic LPG and kerosene," he said.

IOC lost Rs 23,806 crore on selling diesel, domestic LPG and kerosene at government controlled rates in Q1. Against this it got Rs 7,932 crore by way of upstream assistance and another Rs 8,201 crore from the government.

The unmet fuel loss in Q1 increased to Rs 7,673 crore from Rs 7,343 crore in the same period a year ago, Butola said.

Also, the company had to pay Rs 467 crore more in Q1 on account of higher interest on its borrowings.

Besides, IOC had an inventory loss of Rs 900 crore. The company had crude inventory when the government on June 26 cut customs or import duty to zero from 5%, leading to the loss in revaluation, he said.

"Larger reason for the Q1 loss is the unmet revenue loss on fuel sales and increase in interest outgo," he added.

IOC earned $4.71 on turning every barrel of crude oil into petroleum products in the April-June quarter as opposed to a gross refining margin of $3 per barrel an year ago.

Turnover rose about 28% to Rs 99,757 crore in Q1.

IOC Director (Finance) PK Goyal said the company's borrowing have gone up by about Rs 15,000 crore in Q1 -- Rs 52,734 crore to Rs 67,458 crore.

Butola said IOC refined 19.259 million tonnes of petroleum products, including for exports, in Q1. "Our quarterly refining throughtput was 14.306 million tonne and the throughput of the company's countrywide pipeline network went up by 2.792 million tonne to 19.281 million tonne."