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IOC profit plunges 35%

New Delhi, May 29: Indian Oil Corporation (IOC) today reported a 35 per cent drop in fourth-quarter net profit as refining margins shrank and the government did not fully compensate it for losses on fuel sales.

Net profit fell to Rs 9,389.85 crore in the January-March quarter from Rs 14,512.81 crore in the year-ago period, chairman R.S. Butola said.

Explaining the drop in profit, IOC director (finance) P.K. Goyal said during the fourth quarter of 2012-13, the company had received subsidy for more than one quarter, which had boosted profits.

IOC will raise $750 million in external commercial borrowings this fiscal. It will raise another $900 million in overseas debt to repay bridge loans it had taken to acquire shale gas assets in Canada, he said.

The PSU, which owns eight refineries, earned $2.17 on every barrel of crude turned into fuel against a gross refining margin of $3.33 per barrel in the fourth quarter of 2012-13.

Meanwhile, the 15-milliontonne Paradip refinery will be commissioned in phases beginning August-September, which will help IOC to improve its refining margins.

“We aim to start crude processing at Paradip by August-September. This year, we have planned to run it at 60 per cent capacity and for the next year we have planned 100 per cent capacity,” R.K. Ghosh, IOC director refinery said.

Bhel net dips

Bhel has posted a net profit of Rs 1,844.59 crore for the fourth quarter ended March against Rs 3,237.53 crore in the year-ago period.

 
 
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