IOC posts Q2 loss of Rs. 898 crore

State-run oil marketer Indian Oil Corp (IOC) Thursday reported a net loss of Rs.898 crore for the second quarter ended September from massive inventory losses caused by the sustained fall in international oil prices.

The company suffered a net loss of Rs. 898.46 crore during the quarter, as against a net profit Rs.1,683.92 crore earned in the same quarter of the last fiscal, chairman B. Ashok said here.

"The loss was mainly due to inventory of Rs.4,272 crore in Q2 as compared to an inventory gain of Rs.4,635 crore," Ashok said.

Pointing out that global oil prices slumped from $111 per barrel to $95 during this period, he said IOC lost $1.95 on converting each barrel of crude oil into fuel, as compared to a positive margin of $7.43 per barrel in the corresponding quarter last year.

The company lost Rs.12,215 crore in revenue in the quarter under review, most of which was made good by cash subsidy from the government and upstream companies like the Oil and Natural Gas Corp (ONGC).

"There was an unmet under-recovery (loss) of Rs.32 crore in Q2. Besides there is an unmet under-recovery Rs.1,145 crore in H1 (half-year)," A.K. Sharma, director (Finance) said.

Revenue increased 1.3 percent to Rs.111,664 crore in the second quarter. The company's quarterly net sales were flat at Rs 1.11 lakh crore, compared to the same quarter of the previous fiscal

The company said under-recoveries on selling diesel, cooking gas and kerosene below cost cumulatively for the half year ended September stood at Rs.176.60 crore.

IOC stock closed Thursday at Rs.346.40 a share, 4.40 percent, lower than its previous close on the BSE.