OMCs to post combined loss of Rs 10,700 crore in Q1 due to retail losses: ICICI Securities
State-run oil marketing companies – Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum – may post a combined loss of Rs 10,700 crore in the first quarter of the current fiscal, ICICI Securities said on Monday.
The brokerage firm said the loss will be due to selling transport fuels at a loss of Rs 12-14 per litre even as there gross refining margins (GRMs) will remain fairly strong at $17-18 per barrel.
“We estimate GRMs to remain fairly strong at US$17-18/bbl levels (factoring-in inventory loss of US$0.1-0.2/bbl) and marketing volume growth of 17-20%, thanks to continued recovery in prospects and a weaker base. Yet, the sharply higher retail losses of ~ Rs 12/ltr in petrol + diesel combine to drive an EBITDA loss of Rs 66 bn and a net loss of Rs 107 bn for the OMCs in Q1FY23E,” ICICI Securities said.
