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IndianOil Corporation Ltd (IOC) on Thursday reported 14.53 per cent higher net profit for January-March 2013 quarter at Rs 14,513 crore (Rs 12,671 crore). The increase in profit is because of higher subsidy payout by the government to cover losses incurred in selling fuel below market cost.
The public sector refiner has recommended a dividend of 62 per cent, which converts to Rs 6.20 for each equity share of face value Rs 10.
During the fourth quarter of 2012-13, India’s largest oil marketing company received Rs 31,349.09 crore (Rs 23,709.54 crore from the Government and Rs 7,639.55 crore from ONGC, Oil India and GAIL) to make up the losses. This is higher than the compensation of Rs 30,632.08 crore it received in the fourth quarter of the previous year.
IOC, which accounts for nearly 30 per cent of India’s refining capacity of 4.3 million barrels per day, reported a 10 per cent increase in income from operations at Rs 128,681 crore (Rs 117,281 crore) during January-March 2013.
The company reported gross refining margin (GRM) of $2.39 ($2.26) a barrel in the fourth quarter, said Ranbir Singh Butola Chairman, IndianOil.
Butola said the GRM was lower as it is not an integrated company and accounting is done based on the transfer pricing model. Transfer pricing indicates the amount paid by one division of the company to another for using its good or services.
This is in line with normal corporate practice to keep transparency in accounting procedures, Butola said, adding that otherwise, fourth quarter 2012-13 GRM would have been $5.90 a barrel.
Butola said that the company hopes to process heavier crude, which is cheaper. The percentage of high sulphur crude in its crude basket is expected to touch 67 per cent in the next two-three years from 53.3 per cent currently. IOC also plans to spend 20 per cent more funds as capital expenditure, which was at Rs 11,270 crore in 2012-13.
BOND ISSUE
IOC has invited banks to help it raise $500 million by issuing dollar-denominated bonds, said P.K. Goyal Director (Finance). The last date for submitting applications is June 7. The refiner cum marketing company plans to mop up $750 million from the overseas market.
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