IOCL gains on resuming work on projects worth Rs 1.04 lakh cr

Indian Oil Corporation (IOCL) rose 1.45% to Rs 87.40 after the company said it has resumed work on projects worth Rs 1.04 lakh crore across the country, after the easing of lockdown from 20 April 2020.

IOCL has commenced works on 336 projects that have investment of more than Rs 1 crore in each project, at an anticipated project cost totalling to Rs 1.04 lakh crore. The amount spent on these ongoing projects is about Rs 1,764 crore till the end of June 2020. Additionally, more than 50 projects have also resumed since 1 July 2020, a company said in a statement issued on 8 July 2020.

Indian Oil has targeted a capital expenditure (CapEx) of Rs 26,143 crore during FY 20-21 and in the first quarter achieved an approximately expenditure of Rs 2,674 crore, which is 10.23% of the total targeted CapEx, overcoming various issues faced on-ground due to the Coronavirus pandemic.

Major pipeline projects where works have resumed include the Rs 3,338-crore Paradip-Hyderabad products pipeline. Work on the Rs 3,028-crore augmentation of Paradip-Haldia-Durgapur LPG pipeline and the Rs 6,025-crore Ennore-Tiruvallur-Bengaluru-Pondicherry-Nagapattinam-Madurai-Tuticorin R-LNG pipeline has also resumed.

The PSU OMC reported a consolidated net loss of Rs 7782.55 crore in Q4 March 2020 as against net profit of Rs 6004.88 crore in Q4 March 2019. Net sales of Q4 FY20 stood at Rs 1,18,007.32, declining 6.4% from Rs 1,26,076 crore in Q4 FY19.

As of 31 March 2020, the Government of India held a 51.5% stake in IOCL while ONGC held a 14.2% stake in the company. IOCL's segments include sale of petroleum products, sale of petrochemicals and other businesses.

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