Indian Oil posts Rs.37-bn loss in first nine months (Lead)January 30th, 2009 - 10:07 pm ICT by IANS
New Delhi, Jan 30 (IANS) State-run oil major Indian Oil Corp (IOC) posted losses amounting to about Rs.37 billion (Rs.3,700 crore) in the first nine months of this fiscal, but hopes to end the year in the black as the government is expected to issue more oil bonds, said IOC chairman Sarthak Behuria Friday.India’s largest oil marketing company, however, said in the quarter ended Dec 31, it posted a net profit, which increased 41.5 percent to Rs.29.58 billion from Rs.20.9 billion in the corresponding period a year ago.
The company also attributed the net loss of Rs.36.73 billion (Rs.3,673.41 crore) in the first nine months of the current fiscal to losses incurred in the second quarter.
Expenditure on interests rose sharply, which accounted for Rs. 15 billion (Rs.1,500 crore) this quarter compared to Rs 3.87 billion (Rs.387 crore) the previous year.
The net under recovery on petrol, diesel, kerosene and cooking gas during the period stood at Rs.75.39 billion (Rs.7,539 crore) as opposed to Rs.65.15 billion (Rs.6,515 crore) in the corresponding period last fiscal.
Behuria said IOC is earning Rs.4.01 and Rs.1.35 profit per litre of petrol and diesel respectively, while incurring a Rs.11.57 in loss per litre of kerosene and Rs.55 per cylinder of cooking gas.
Prior to the fuel price cut announced Tuesday, IOC was made a Rs.170-million (Rs.17-crore) profit every day. “Now it has come down to a loss of Rs.15 crore daily,” said IOC’s finance director S.V. Narasimhan.
During the first nine months of 2008-09, IOC received Rs.341.65 billion (Rs.34,165 crore) from the government in form of bonds.
Behuria said the outlook for the next quarter was much better. “We are now seeing hardening of price, so there will be inventory gain. The refinery margins would be better and therefore, we feel that more under recoveries on products will not be there,” he said.
Further, he was “reasonably hopeful” that the under-recoveries of Rs.75.39 billion (Rs.7,539 crore) will get “wiped out through an additional bond”.
On the international prices, he felt that crude prices will hover around $45 a barrel.