State-owned Indian Oil Corp. posted a 50 per cent jump in quarterly profit as the margin for converting crude into fuels more than doubled.
Net income climbed to Rs 68.3 billion ($992 million) in the quarter ended June 30, from Rs 45.5 billion a year earlier, the company said in a stock-exchange filing Saturday. That compares with the Rs 53.3-billion average of 20 estimates compiled by Bloomberg. Sales rose 16 per cent to Rs 1.5 trillion.
India’s largest refiner has taken advantage of rising domestic oil consumption, which expanded for a 10th straight month in June, as vehicle sales surged and economic activity picked up. The Mumbai-based company is locking in future supplies and said this month it signed a term tender to purchase American oil for delivery every month between November and January as US President Donald Trump seeks to squeeze Iran exports.
Indian Oil earned $10.21 for every barrel of crude it turned into fuel in the quarter compared with $4.32 a year earlier. A weaker rupee also helped since the refiner’s products are priced mostly in dollars but it reports earnings in rupees. The rupee averaged about 67.06 for a dollar in the quarter ended June, four per cent lower than a year ago.
Brent crude, the global benchmark, averaged about $75 a barrel in the quarter ended June, up from about $51 a barrel a year earlier.