After excluding inventory losses, the GRM for Q4FY20 was $2.15. Average GRM for the whole of FY20 fell to $0.08 a barrel as compared to $5.41 a year earlier.
The core GRM or the current price GRM for FY20 after offsetting inventory loss/gain stood at $2.64. Its gross sales of POL (petroleum, oil, and lubricants) was 81.94 million tonnes (mt), which was a tad lower than 82.90 mt in FY19, but more than IndianOil’s throughput. “We sold more than what we produce ourselves,” said Singh.
The IndianOil board also approved the proposal for seeking shareholders’ approval at the ensuing Annual General Meeting to increase the borrowing limits by Rs 55,000 crore to Rs 1,65,000 crore. IndianOil Director Sandeep Kumar Gupta said the borrowing limit was last increased 10 years ago, while stating that the firm’s current borrowing was Rs 1,04,000 crore and stabilised after it rose during the lockdown.
Singh said refineries were currently operating at 90 per cent capacity. They operated at 100.4 per cent in FY20. He said demand recovery was satisfactory, but going beyond 90 per cent of the pre-Covid level would be difficult for diesel and would depend on full recovery in other sectors, which was likely by year-end.
While in case of diesel, absence of public transport was one big factor for low consumption, Singh said for jet fuel or ATF the lack of demand for business travel would continue. The company would, however, stick to its capital expenditure of Rs 26,000 crore for FY21.