The Hindu Business Line : Strong refinery margins lift IndianOil net 16.7%

New Delhi, Jan. 31 Strong refinery margins have helped state-owned Indian Oil Corporation Ltd (IOC) report a 16.7 per cent growth in net profit for the third quarter of the current fiscal. The PSU refining and retailing major has posted a net profit of Rs 2,091 crore for the quarter ended December 2007 (Rs 1,792 crore during the same quarter in the previous year). IOC’s gross turnover for the third quarter was up 13 per cent to Rs 64,726 crore (Rs 57,365 crore).

Speaking to media persons after the board meeting the IOC Chairman, Mr Sarthak Behuria, said, “IOC has earned $10.43 on processing one barrel of crude compared to $4.50 per barrel in the third quarter of the previous fiscal.” For the nine-month period of the current fiscal IOC’s net profit increased 23 per cent to Rs 7,377 crore (Rs 5,997 crore).

The profit for the third quarter was also due to higher valuation of IBP shares which stood at Rs 423 crore.

Forex gains

During the nine-month period ended December 2007, the profitability was propelled by refinery margins of $9.10 per barrel ($3.64 per barrel) and foreign exchange gain of about Rs 991 crore. Its gross turnover moved up 7 per cent to Rs 1,77,223 crore (Rs 1,65,613 crore).

Mr Behuria said the net under-recovery on the four petroleum products — petrol, diesel, PDS kerosene and domestic LPG — for the nine-month period was Rs 6,515 crore. This was after considering approval received from the Government for issuance of special oil bonds of Rs 5,099 crore for the October-December quarter, in addition to special oil bonds of Rs 6,362 crore already received for April-September 2007.

NELP

IOC is in talks with Petrobras, Exxon Mobil, Chevron, Reliance Industries Ltd, besides ONGC, Oil India, and GAIL for bidding for oil and gas blocks offered in the seventh round of the new exploration and licensing policy. Mr Behuria said, “We are in talks with several companies, both domestic and overseas for bidding for NELP-VII.”

“I am not in a position to say who we are going to bid with as these things are decided closer to the bid date,” he said, adding that ‘this time around the Government has offered some nine small online blocks for which IOC is eligible to become operator. We have bought data packages for 8-9 blocks and will be bidding for these on our own.” IOC shares on the BSE closed 5.49 per cent higher at Rs 480.55 on Thursday.

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