IOC first quarter up 25% at Rs 8,269 crore

State-run Indian Oil Corporation (IOC) had a 25 per cent rise in net profit for the first quarter of financial year 2016-17, to Rs 8,269 crore, from the same period last year.

“This is the highest ever first-quarter profit by our company. It is mainly due to the improvement in petrochemical margin and inventory gains,” said Sanjiv Singh, director (refineries).

The petrochemical margin was Rs 2,324 crore, compared to Rs 1,878 crore during the first quarter of 2015-16. The inventory gain was Rs 7,479 crore, from Rs 3,228 crore. Total income from operations fell 5.7 per cent to Rs 107,200 crore, as against 113,743 crore a year before.

The board of directors has recommended bonus shares in the ratio of one of Rs 10 for each existing equity share of Rs 10, each fully paid-up. After the bonus, the company would have cash reserves of Rs 87,000 crore.

Debt at the end of the quarter was Rs 39,497 crore, as against Rs 53,404 crore during the same time last year. The gross refining margin was $9.98 a barrel, as against $10.77 a year before.

Earnings per share rose to Rs 34.90, from Rs 27.81 in the same quarter last year.

IOC said it planned to import five million tonnes of crude oil from Iran this year, compared to 1.2 mt last year. On development of the Farzad-B gas field in that country, chairman B Ashok said: “We have appointed a consultant. Once their report is ready, we might sign a development contract. We are still holding on to the October deadline for this.” ONGC Videsh, Oil India and IOC had discovered 12.8 trillion cubic ft of gas reserves in the block in 2008.

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel