IOC Q3 Profit Triples on Big Inventory Gains - The Economic Times
31-Jan-2020 10:17:13 AM
Indian Oil Corp's third quarter profit has more than trebled from a year ago on big inventory gains. Profit for the October-December quarter jumped to Rs 2, 339 crore from Rs 717 crore a year earlier. Revenue declined 10% to Rs 1, 44, 820 crore on lower product prices.
"The variation in profit is majorly on account of inventory gain during the current quarter against inventory loss during the corresponding quarter of previous financial year partly offset by lower refining margins and exchange losses during the current quarter, " said Indian Oil chairman Sanjiv Singh.The company accrued an inventory gain of Rs 1, 608 crore during the quarter against an inventory loss of Rs 8, 523 crore in the same quarter of the previous year. Gross refining margin (GRM), the difference between the cost of crude oil processed and the price of refined products, expanded to $4.
09 per barrel for the quarter from $1.15 per barrel in the year-ago period. The GRM, after excluding the impact of inventory gain, will fall to $2.
15 for the quarter from $5.12 a year earlier.Singh said he did not expect the coronavirus epidemic to hurt global jet fuel demand significantly.
The first case of coronavirus was reported in India on Thursday. Analysts expect the virus, which originated in China and has killed 170 people so far, to cut global oil demand, especially jet fuel's, and impact economic growth.Air India, which the government is privatizing, owes Rs 2, 500 crore in unpaid fuel dues to Indian Oil, Singh said.
Indian Oil is ready to meet the official deadline of April 1to sell BS-VI petrol and diesel from all its filling stations across the country, Singh said.To recover the cost of investments that has gone into upgrading their refineries for producing BS-VI fuels, Indian Oil will levy an extra charge of 50 paise to one rupee a litre, an executive said.