Indian Oil Q1 net more than doubles to Rs.6,436 crore

State-run oil marketer Indian Oil Corp (IOC) on Thursday reported it has more than doubled its first quarter net profit to Rs.6,436 crore, compared to the Rs.2,522.94 crore earned in the year-ago period, on the back of higher refining margins.

The company had a gross refining margin (GRM) $10.77 per barrel in the April-June quarter of the fiscal, as against $2.25 it earned on refining every barrel of crude oil in the same quarter of the last year.

However, sales in the quarter in question fell to Rs.101,306.82 crore from Rs.124,956.69 crore in the first quarter of last fiscal, pulled down by plunging oil prices.

IOC said that it had recovered most of its under-recoveries, or losses, on account of selling public distribution system (PDS) kerosene and domestic LPG below cost during the quarter in question from the government (Rs.1,732.95 crore) and upstream oil companies like ONGC (Rs. 878.84).

It also announced it will commission all units at the 300,000 barrel per day capacity Paradip refinery in Odisha by the end of next month.

"By the end of September, all units will be in place and we will be producing products regularly," company chairman B. Ashok told reporters here regarding the Paradip refinery.

IOC's finance director A.K.Sharma told reporters that the company could pay a part of its oil import dues to Iran as early as this month.

This follows the world powers signing the historic nuclear deal with Iran last month, and although there is no immediate timeline for the payment, a partial payment could be possible this month, he said.

IOC still owes around $500 million to Iran for crude supplied, he added.

The Indian Oil stock closed on Thursday at Rs.394 a share, 6.10 points, or 1.57 percent, higher than its previous close on the Bombay Stock Exchange.