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IndianOil Corporation Limited (IOCL) has reported an ₹8,565.54 crore consolidated net loss for the fourth quarter of financial year 2019-20. The company had reported a consolidated net profit of ₹6,003.96 crore in the same quarter of financial year 2018-19.
The losses are on account of a fall in demand for petroleum products and drop in crude oil prices, due to Covid-19 induced economic slowdown.
Consolidated total income for the period under review stood at ₹1,43,620.13 crore, down from ₹1,48,242.75 crore in the same period of the previous financial year.
The Gross Refinery Margin (GRM), an assessment of the gains or loss per barrel of crude oil processed by the company, stood at minus $9.64 a barrel in the fourth quarter of financial year 2019-20. IOCL had reported a GRM of $4.09 a barrel in the same quarter of the financial year 2018-19, a company official said.
IOCL also reported an inventory loss of ₹14,692 crore in the fourth quarter of the fiscal 2019-2020 against an inventory gain of ₹1,787 crore in the comparable quarter of fiscal 2018-19. The inventory loss or gain is a change in value of crude oil already purchased and petroleum products refined but still with the company at different levels of the value chain.
In a statement to the BSE, IOCL said that it will be seeking approval of the shareholders at the ensuing Annual General Meeting for an increase in the borrowing limits from ₹1,10,000 crore to ₹1,65,000 crore. This will include public deposits, bonds and debentures but excluding temporary loans obtained from the company’s bankers in the ordinary course of business and for creation of charge on the assets of the company.
Volatile fuel price
In response to a query from BusinessLine , on the rising petrol and diesel prices, IOCL Chairman, Sanjiv Singh, said. “Internationally, we have seen these prices shrinking very badly and we have seen (crude oil) prices run into negative. If we reduce the prices based on that, we arrive at some sort of a non-sustainable price.”
“Now we see the demand again pick up so we see crude oil, petrol and diesel prices in the international market also go up,” Singh said.
“Today whatever price rise we see, it is predominantly because of the movement in international prices. Unfortunately, we are still not seeing those prices holding at a certain level, even if the crude prices may get stabilised at a certain level, because the margins are still not at a normal level, it is quite likely the prices may still move. Till what time they will move is difficult to say,” he said.
The price of diesel in the country has increased for the 17th consecutive day on Wednesday. Diesel sold at ₹ 79.88 a litre in Delhi after the hike. The price of petrol was kept unchanged at ₹79.76 a litre in the national capital after rising for 16 consecutive days.
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