State-run Indian Oil Corporation (IOC) on Tuesday reported a consolidated net profit of ₹13,713 crore in the July-September quarter in FY24 as against a net loss of ₹910 crore a year-ago.

However, the country’s largest oil marketing company’s (OMC) net profit in Q2 FY24 was down 7 per cent sequentially on account of lower sales.

The Maharatna company reported a lower consolidated total income of ₹2.06-lakh crore in Q2 FY24 compared with ₹2.34 lakh crore in Q2 FY23 and ₹2.26-lakh crore in Q1 FY24, it said in a results filing on the BSE.

IOC’s board declared an interim dividend of 50 per cent, or ₹5 per equity share of face value of ₹10 for FY24.

Net negative buffer

IOC also informed the BSE that the Ministry of Oil, through a letter on April 30, 2020, conveyed to OMCs that where Market Determined Price (MDP) of LPG cylinders is less than its Effective Cost to Customer (ECC), the OMCs will retain the difference in a separate buffer account for future adjustment.

“However, as on March 31, 2023, the company had a cumulative net negative buffer of around ₹2,220 crore as the retail selling price was less than MDP. The same has been recognised as a part of revenue from operation upon its recovery during April-September 2023,” it added.

Operational metrics

IOC Chairman S M Vaidya said that IOC sold 47.651 million tonnes (MT) of products, including exports, in H1 FY24.

“Our refining throughput for the first six months of FY24 was 36.524 MT and the throughput of the corporation’s countrywide pipelines network was 48.821 MT during the period,” he added.

For Q2 FY24, IOC’s product sales volumes, including exports, was 23.244 MT on a standalone basis. The refining throughput was 17.772 MT, and the throughput of its countrywide pipelines network was 23.870 MT.

This is against a refining throughput of 18.752 MT and throughput of its countrywide pipelines network including gas pipelines at 24.951 MT in Q1 FY24. Its product sales volumes, including exports, in April-June 2023 stood at 24.407 MT.

The average Gross Refining Margin (GRM) for April-September 2023 is $13.12 per barrel against $25.49 a year ago. The core GRM or the current price GRM for April-September 2023 after offsetting inventory loss/gain comes to $12.60 per barrel.