Higher refinery margins and government subsidy help
Riding strongly on the back of higher refinery margins and government subsidy, Indian Oil Corporation (IOC) on Saturday posted a record 17-fold jump in net profit for the quarter ended September 30, 2010.
The net profit in July-September stood at Rs.5,293.95 crore against Rs.284.36 crore in the same period last fiscal, IOC Chairman B. M. Bansal told reporters here.
The company earned $6.63 on processing every barrel of crude oil as opposed to a gross refining margin of $3.62 a barrel in the second quarter of last fiscal.
IOC lost Rs.17,421 crore in revenues on selling diesel, domestic LPG and kerosene in April-September. Of this, the government provided Rs. 7,219.95 crore by way of cash subsidy and another Rs.5,806.80 crore was received from upstream firms like ONGC.
The company got the compensation for the entire first-half in October while no subsidy support was provided in the corresponding period in the previous year, Mr. Bansal said.
Despite government subsidy and upstream support, IOC had to book Rs.4,393.74 crore in revenue loss on fuel sales, he said.
“We are currently losing Rs. 81 crore a day on sale of diesel, domestic LPG and kerosene below imported cost,” he said. IOC loses Rs. 2.62 a litre on diesel, Rs. 15.71 a litre on kerosene and Rs. 210 a cylinder on LPG.
The turnover of the company rose by 14.5 per cent to Rs. 74,757 crore in the July-September quarter. The company sold 16.92 million tonnes of products, including exports during the second quarter. Refinery throughput dropped 2.2 per cent to 12.13 million tonnes while exports were up 4.7 per cent at 1.24 million tonnes.