Indian Oil Corporation (IOC) Profits Up to Rs 1624 crore in H-1, 2014-15

Sarkaritel
By Sarkaritel November 14, 2014 10:41

Indian Oil Corporation (IOC) Profits Up to Rs 1624 crore in H-1, 2014-15


Profits Move North on Lesser Foreign Exchange Risks as Crude Prices Crash

By TN Ashok   Economics Editor

New Delhi, Nov 14 : State owned Indian Oil Corporation (IOC) reported a standalone net profit of Rs 1624  crore for first half of 2014-15 ending September 30 this year , comparing sharply with a net loss of Rs 1409 crore in the corresponding period last year.

“This was mainly due to lower foreign exchange losses, finance cost and depreciation partly offset by lower refining margins”, Mr B Ashok, Chairman and Managing Director of IOCL, told newsmen today shortly after a board meeting.

IOCL, India’s largest oil refining company, saw an increase of 7.2% in its income from operation to touch Rs 2, 36, 621 crore as against Rs 2.20,671 crore in the corresponding period last year.

For the quarter ended September 30 2014, IOCL reported a standalone net loss of Rs 898 crore on income from operation of Rs 1,11,664b crore . During the same period last year, the Corporation reported a net profit of Rs 1684 crore on income from operations of rs1, 10,204 crore.

The variation in profitability is mainly on account of lower refining margins arising from inventory losses ensuing from falling crude/product prices during the current quarter, iocl statement said.

Ashok said “IndianOil’s product sales volumes including exports was 37.799 million tonnes during the first six months of FY 2014-15. Indian Oil’s refining throughput was 26.273 million tonnes in the first half year of the current fiscal. The throughput of the corporation’s countrywide pipelines network was 37.929 million tonnes during period April to September 2014.

Product sales volumes including exports was 18.027 million tonnes during the 2nd quarter of FY 2014-15. Refining throughput was 13.407 million tonnes during the current quarter. The throughput of the corporation’s countrywide pipelines network was 19.039 million tonnes during the current quarter.

Reacting to the excise duty hike of Rs 1.50 per litre across the board for both diesel and petrol, Ashok confirmed that it would not be passed onto the consumer as of today. The IOCL was however guarded saying the volatility in prices of crude and products in the international markets would decide the future course of action on which he did not want commit himself now.

Referring to automation of retail outlets, AK Sharma, director, said the target had been fixed at 2500 this year.

Referring to the paradip refinery project, IOCL CMD Ashok said, 97.2% of the work had been completed. IOCL would resort to phased commissioning of the project and full commissioning would take place in six to eight months from that date. Tentatively, the refinery is to be commissioned in the last half of February 2015.

Sanjiv Singh, Director, said the crude unit was ready as also the boilers units, It would take about six to eight months to fully commission the refinery from the date of phased commissioning starts, that is from Febaruy 2015.

The IOCL CMD also ruled out any merger of Chennai Petroleum with IOCL. “There is no decision on the table or board today, but it is an option we could consider. At the moment we want to engage in infusion of funds the make the refineries work more profitably and efficiently. It has also been hit by the fluctuations in the rupee dollar rates as also the volatility in the international prices of crude last year”.

Sarkaritel
By Sarkaritel November 14, 2014 10:41