Indian Oil Corporation on Friday reported more than three-fold increase in its net profit in 2009-10, even though the oil marketing company is losing Rs.105 crore in revenues everyday on selling fuel below cost.

It is also planning to revive projects that it had put on the backburner due to cash crunch earlier.

The IOC board has proposed Rs.13 per share dividend for 2009-10.

In the fiscal ended 2010, the corporation's net profit stood at Rs.10,220.55 crore against Rs.2,949.55 crore in the previous year, though sales dipped by 5.1 per cent to over Rs.2.49-lakh crore.

Inventory gains

“The higher profitability in 2009-10 was because of Rs.2,541 crore from inventory gains, Rs.446 crore in lower interest cost and Rs.940 crore in foreign exchange gains,” IOC Chairman B. M. Bansal told journalists here.

He said IOC planned to spend Rs.13,000 crore in Plan and Rs.2,000 crore in non-Plan expenditure in the current fiscal.

IOC had invested Rs.12,256 crore last fiscal, mostly on refinery upgradation.

“Financially, we are in a better position now and so we are re-examining projects in hand and prioritising them. We had kept the petrochemical project at Paradip in Orissa on the hold…now with better prices, we have to take a decision when we have to start the project again,” Mr. Bansal said.

The petrochemical project will cost Rs.22,300 crore.

He also said IOC was doing a detailed feasibility report (DFR) for setting up an LNG import terminal at Ennore near Chennai.

Keywords: IOC net profit