The Hindu Business Line : ONGC stake sale boosts IOC figures

Oil & Natural Gas Corporation (ONGC) seems to have played a vital role in helping the State-owned IOC in registering a net profit in the first quarter of current fiscal. IOC registered a net profit of Rs 1,781 crore in the quarter, as compared to net loss of Rs 58 crore in the same period last year. This is after factoring in the profit of Rs 3,225 crore from the sale of 20 per cent of its investment in ONGC, Mr Behuria said.

Speaking to newspersons soon after the Board meeting, Mr Behuria said if the sale of ONGC stake was not considered then the company has posted a net operating loss of Rs 1,444 crore during the first quarter of the current fiscal. This was mainly due to under realisation of Rs 4,898 crore on sale of petrol, diesel, kerosene, and cooking gas during the first quarter of 2006-07 as against Rs 3,194 crore during the corresponding quarter of the previous year.

The company has suffered a loss of Rs 2,682 crore on domestic sale of petrol and diesel, and Rs 2,216 crore on cooking gas and kerosene during the quarter due to the non-revision of retail selling prices in line with international prices. The company was losing Rs 100 crore per day on sale of petrol, diesel, LPG and kerosene.

IOC's sales turnover for the first quarter of 2006-07 jumped 26 per cent to Rs 53,164 crore from Rs 42,340 crore in Q1 of the previous year. IOC sold 12.27 million tonnes of petroleum products (including gas sales) in the domestic market, besides exporting 0.80 million tonnes, in the first quarter of 2006-07. Its seven refineries together achieved a throughput of 10.03 million tonnes, and the pipelines network transported 11.71 million tonnes of crude oil products.

Mr Behuria said the company's total borrowings declined to Rs 22,539 crore as on June 30, 2006 compared to Rs 26,400 crore as on March 31 this year. The average gross refining margin was $ 6.70 per barrel after giving out a discount of $ 1.96 a barrel to subsidise losses on fuel sales. The gross refining margin in April-June 2005-06, when no discount was given, stood at $ 6.16 barrel.

On the export front, IOC for the first time sold lubricants to Pakistan recently. "While lube and diesel remain on the `negative trade list' that country had placed order for import of 10,000 tonnes of lube oil and the first cargo of 5,000 tonnes was shipped from Haldia in July with the second cargo expected to be shipped in August," he said

IOC has set a target to import 40 millions crude oil in the current financial year, of this, it has imported 10 million tonnes during April-June quarter. The company has tied up term contract for 25 million tonnes and is in negotiations with Nigerian companies for another 2 million tonnes. The remaining 13 million tonnes will be spot buys.