NEW DELHI: Indian Oil Corporation, the country’s largest oil company, on Tuesday reported a 67 percent increase in its March-quarter net income on a recovery in fuel marketing margins and improving refining margins.
Standalone net income for the January-March period was 10,058.69 crore, or Rs.7.30 per share, compared with 6,021.88 crore, or Rs.4.37 per share, in the same period last year, according to a company’s IPO.
The increase in net income in the fourth quarter helped the company achieve a net income of 8,241.82 crore for the full fiscal year 2022/23 (April 2022 to March 2023) by offsetting the losses the company suffered in the first half of the fiscal year despite a rise in costs, the prices for petrol, diesel and liquid gas were not able to be maintained.
IOC and other state fuel traders Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) continue to keep prices up, but a drop in international oil prices has meant they are now making good margins.
Petrol and diesel prices have been frozen since April 6 last year. The basket of crude oil that India imports was over $100 a barrel in April last year and is now under $75.
Crude oil is processed into fuel in refineries like those of the IOC.
While prices have fallen, the three state-owned companies are keeping their interest rates on hold to recoup losses suffered in the first half of the fiscal year.
The IOC reported a net profit of Rs.8,242 crore for the 2022-23 financial year compared to Rs.24,184 crore last year. The lower profit was “mainly due to lower marketing and petrochemical margins as well as higher year-to-year foreign exchange losses,” the company said in a statement.
HPCL recorded a loss of 6,980.23 crore rupees last week in the 2022-23 period. This is because more fuel is sold than is produced. The excess fuel is bought by private and other refiners who sell it at market price, resulting in losses.
The IOC Board recommended a final dividend of 3 rupees per share.
Revenue rose 10 percent to Rs.2.26 million in the fourth quarter. Marketing sales for the quarter were 22.95 million tonnes, flat from the previous quarter but up 5 percent from the 21.789 million tonnes sold a year ago.
For the full year, 90.65 million tonnes of fuel were sold, compared to 80.49 million tonnes in 2021-22. Its refineries processed higher grade crude oil to meet the increasing demand of the economy.
IOC earned $19.52 in FY23 converting each barrel of crude oil into fuel, compared to $11.25 per barrel gross refining margin a year ago. Core GRM after accounting for inventory losses/gains was $20.14 per barrel.
“The suppressed marketing margins of certain petroleum products have negated the benefit of the increase in GRM,” the IOC said.
The GRM for the fourth quarter was $15.3 per barrel.
EBITDA was 15,340 crore, up 3.3x sequentially (on a weak basis).
IOC operating profit improved sequentially on strong refining margins and improved marketing segment performance.
IOC Chair SM Vaidya said: “IndianOil sold 95.714 million tonnes of products including exports in FY2022-23. Our refinery throughput for fiscal 2022-23 was 72.408 million tonnes and the Company’s nationwide pipeline network throughput was 97.382 million tonnes during the year.”
Standalone net income for the January-March period was 10,058.69 crore, or Rs.7.30 per share, compared with 6,021.88 crore, or Rs.4.37 per share, in the same period last year, according to a company’s IPO.
The increase in net income in the fourth quarter helped the company achieve a net income of 8,241.82 crore for the full fiscal year 2022/23 (April 2022 to March 2023) by offsetting the losses the company suffered in the first half of the fiscal year despite a rise in costs, the prices for petrol, diesel and liquid gas were not able to be maintained.
IOC and other state fuel traders Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) continue to keep prices up, but a drop in international oil prices has meant they are now making good margins.
Petrol and diesel prices have been frozen since April 6 last year. The basket of crude oil that India imports was over $100 a barrel in April last year and is now under $75.
Crude oil is processed into fuel in refineries like those of the IOC.
While prices have fallen, the three state-owned companies are keeping their interest rates on hold to recoup losses suffered in the first half of the fiscal year.
The IOC reported a net profit of Rs.8,242 crore for the 2022-23 financial year compared to Rs.24,184 crore last year. The lower profit was “mainly due to lower marketing and petrochemical margins as well as higher year-to-year foreign exchange losses,” the company said in a statement.
HPCL recorded a loss of 6,980.23 crore rupees last week in the 2022-23 period. This is because more fuel is sold than is produced. The excess fuel is bought by private and other refiners who sell it at market price, resulting in losses.
The IOC Board recommended a final dividend of 3 rupees per share.
Revenue rose 10 percent to Rs.2.26 million in the fourth quarter. Marketing sales for the quarter were 22.95 million tonnes, flat from the previous quarter but up 5 percent from the 21.789 million tonnes sold a year ago.
For the full year, 90.65 million tonnes of fuel were sold, compared to 80.49 million tonnes in 2021-22. Its refineries processed higher grade crude oil to meet the increasing demand of the economy.
IOC earned $19.52 in FY23 converting each barrel of crude oil into fuel, compared to $11.25 per barrel gross refining margin a year ago. Core GRM after accounting for inventory losses/gains was $20.14 per barrel.
“The suppressed marketing margins of certain petroleum products have negated the benefit of the increase in GRM,” the IOC said.
The GRM for the fourth quarter was $15.3 per barrel.
EBITDA was 15,340 crore, up 3.3x sequentially (on a weak basis).
IOC operating profit improved sequentially on strong refining margins and improved marketing segment performance.
IOC Chair SM Vaidya said: “IndianOil sold 95.714 million tonnes of products including exports in FY2022-23. Our refinery throughput for fiscal 2022-23 was 72.408 million tonnes and the Company’s nationwide pipeline network throughput was 97.382 million tonnes during the year.”
