INDIAN Oil Corporation ( IOC) on Friday reported a record net profit of Rs 10,399 crore for the financial year ended March 31, 2016 to become the country's second most profitable public sector company.
The IOC profit figure is econd only to Oil and Natural Gas Corporation's Rs 16,004 crore net profit in 2015- 16 fiscal.
" Indian Oil's net profit in 2015- 16 was almost double the Rs 5,273.03 crore net profit of the previous fiscal, company Chairman B Ashok told journalists here.
" We have had an outstanding year in terms of both operating performance and profit. The profit in 2015- 16 is the highest ever and better than Rs 10,200
crore profit in 2009- 10,'' he added.
IOC refineries processed a record 56.2 million tons of crude oil 2015- 16, up from 53.6 million tons in the previous year while fuel sales soared 6 per cent to record 72.7 million tons.
The company maintained its leadership position with a 45.5 per cent market share.
Petrochemical sales were up 2 per cent to 2.538 million tons, he said.
Turnover, however, dipped 11.4 per cent to Rs 450,738 crore on back of drop in oil prices.
The profit was aided by sharp drop in revenue loss or underrecoveries on sale of LPG and kerosene because of crash in international oil prices.
Under- recoveries dropped from Rs 39,758 crore in 2014- 15 to Rs 7,757 crore in 2015- 16. All but Rs 9 crore of the underrecoveries were met by government subsidy or dole from upstream firms like ONGC. Ashok said IOC's debt had come down to Rs 52,469 crore as on March 31, 2016 from Rs 55,248 crore a year earlier.
Also, the company has cut down on procurement cost while inventory losses for the full year have almost halved to Rs 9,731 crore.
But for the January- March quarter, IOC posted an 80 per cent drop in net profit to Rs 1,235.64 crore.
This was due to inventory loss of Rs 3,335 crore as against Rs 871 crore inventory loss in Q4 of 2014- 15, he said adding there was also a provision of Rs 881 crore made for impairment of asset following a sharp fall in crude oil prices.
Also, Rs 612 crore has been provisioned for increase in rental for petrol pumps in the national capital.
For oil companies profitability should be looked at from the point of view of the full year, he said.
The company earned USD 8.7 on turning every barrel of crude oil into petroleum products such as petrol, diesel and LPG in the January- March quarter, up from a gross refining margin of USD 3 a barrel a year earlier.
IOC Chairman B. Ashok
(c) 2016 India Today Group. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info)., source Middle East & North African Newspapers