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IOC incurs Rs 5.8-cr loss in Q3
'Under realisation of petrol, diesel the main cause'

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Mr S. Behuria (right), Chairman, Indian Oil Corporation Ltd, with Mr S.V. Narasimhan, Director Finance, at a press conference in Mumbai on Friday. - Paul Noronha
Mr S. Behuria (right), Chairman, Indian Oil Corporation Ltd, with Mr S.V. Narasimhan, Director Finance, at a press conference in Mumbai on Friday. - Paul Noronha

Our Bureau

Mumbai, Jan 27

INDIAN Oil Corporation Ltd (IOC) has posted a net loss of Rs 5.83 crore for the quarter ended December 31, 2005. This is against a net profit of Rs 1,286.76 crore that the company had earned during the corresponding previous quarter.

The company's losses during the period under review were to tune of Rs 136.87 crore before computing tax. It was the deferred tax provision of Rs 140.84 crore that saw its net loss come down to Rs 5.83 crore.

IOC saw its net sales during the period climb to Rs 43,956 crore (Rs 36,271 crore).

The IOC share price was marginally down on BSE today at Rs 529.75 against Thursday's close of Rs 532.90.

Talking to the media here on Friday after the board of directors meeting, Mr Sarthak Behuria, Chairman, IOC, said the lower profits came primarily on account of under-realisation in the case of petrol, diesel, PDS kerosene and LPG.

The under realisation during the quarter stood at Rs 2,479 crore, double that of Rs 1,208 crore a year ago.

IOC's under realisation for the first nine months was up at Rs 8,106 crore (Rs 6,496 crore).

Similarly, the gross refinery margin (GRM) during the quarter was down at $3.36 per barrel as against $5.4 per barrel in the previous comparable period. For the nine-month period, the GRM was $5.16 per barrel ($6.6).

IOC's share of the total oil bond quantum of Rs 5,750 crore could be around Rs 3,200 crore, he said.

"But it is not possible to book it as income because we need to sell it in the market first. This is possible only after knowing the tenure and the interest rate of the bond," Mr Behuria said.

The refinery throughput during the quarter was up at 9.86 million tonnes (8.81 million tonnes) and pipeline throughput was at 11.73 million tonnes (10.26 million tonnes).

The raw material cost and purchase of products for resale during the nine-month period included Rs 5,071 crore (Rs 2,499 crore) towards discount from ONGC/GAIL/OIL, the company said. IOC has changed the method of valuation of crude from `FIFO' to `Moving Average' resulting in increase in inventory valuation and profit of Rs 120 crore, it was explained.

Mr Behuria said IOC would also take the SEZ route to set up its Paradip refinery.

There were only very few locations that India could offer for coastal refineries as the key was in having the right kind of draft for VLCCs to navigate to discharge crude through SPMs, he said.

IOC along with IBP was set to raise its retail outlet numbers to 15,000 by March as against the present level of 14,500. However, evacuation of a PSU pump at about140 KL per month lagged way behind the private sector pump, which was about 280 KL.

IBP Company Ltd posted a net loss of Rs 96.3 crore during the third quarter - almost on par with the Rs 98-crore net loss that it had suffered in the year ago period.

The company's sales during the period were up at Rs 3,961 crore (Rs 3,515 crore).

(This article was published in the Business Line print edition dated January 28, 2006)
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