IOC returns to black, posts Rs 448 crore profit in Q3

New Delhi, Jan 31 (PTI) Indian Oil Corporation (IOC), the nation's largest oil firm, on Tuesday reported returning to profitability in the December quarter after losses in the preceding six months from holding fuel prices despite a rise in cost.

Standalone net profit of Rs 448.01 crore in October-December 2022 compared with Rs 5,860.80 crore net earning in the same period of previous fiscal, and a loss of Rs 272.35 crore in the preceding July-September 2022 period, according to a company's stock exchange filing.

IOC and other state-owned fuel retailers did not revise the price of petrol, diesel and cooking gas LPG starting April despite a rise in cost. This led to back-to-back quarterly losses. In case of IOC, the loss totalled Rs 2,265 crore in the April-September period.

They continue to hold prices but the cost has come down as crude oil prices declined globally. This has helped them recoup some of the past losses and make decent profit.

The firms have been aided by good refining margins but petrochemical business has been a drag.

IOC said it earned USD 21.08 on turning every barrel of crude oil into fuel during the April-December period as against a gross refining margin of USD 8.52 per barrel a year back.

Core GRM after offsetting inventory loss or gain was USD 20.55 per barrel.

"However, the suppressed marketing margins on certain petroleum products have offset the benefit of increase in GRM," the firm said in notes to the accounts.

While it saw pre-tax profit on petroleum products rise to Rs 1,541.67 crore in October-December from Rs 100.63 crore in the preceding quarter (Rs 6,149 crore a year back), IOC booked Rs 616.4 crore loss on petrochemicals business.

The revenue from operations rose to Rs 2,28,168 crore in the third quarter of 2022-23 from Rs 1,97,168 crore in the corresponding quarter of previous year.

The firm sold 10 per cent more products at 23.17 million tonnes in October-December as fuel demand recovered on economy rebounding after the pandemic. Its refineries also processed a higher 18.2 million tonnes of crude oil into fuel in the quarter.

"IOC sold 71.382 million tonnes of products, including exports, during the period April-December 2022. Our refining throughput for first nine months of FY 2022-23 was 53.231 million tonnes and the throughput of the corporation's countrywide pipelines network was 72.085 million tonnes during the period," a company statement later quoted chairman S M Vaidya as saying.

Higher earnings are due to healthy improvement in the marketing segment.

On Monday, Bharat Petroleum Corporation Ltd (BPCL) reported a net profit of Rs 19,59.6 crore in the third quarter.

Hindustan Petroleum Corporation Ltd (HPCL), the third state-run oil refining and marketing company, will report its earnings next month.

"Higher-than-estimated GRMs and higher blended marketing margins drove the beat, with Rs 5 a litre improvement in blended retail loss and higher other product margins being a material positive," ICICI Securities said in its comments on BPCL earnings. PTI ANZ SHW SHW