NEW DELHI: India\u2019s largest oil refiner and fuel retailer IndianOil Corporation on Wednesday reported a loss of Rs 5,185 crore loss in the fourth quarter of 2019-20, against a profit of Rs 6,099 crore in the year-ago period, due to massive inventory losses on account of oil price crash.
\nCompany chairman Sanjiv Singh said the company recorded an inventory loss of Rs 14,692 crore in the January-March period as compared to an inventory gain of Rs 1,787 crore in the same period a year back, company chairman Sanjiv Singh said.
\nAs a result, the company also posted a negative gross refining margin of $9.64 per barrel in the quarter under review against earning of more than $4.09 in the previous corresponding period. However, if the inventory losses were to be counted out, the margin stood at $2.15 a barrel.
\nThough the street had factored in these losses, the company’s stock declined 2.6% on the BSE to close at Rs 87 on Wednesday when the Sensex closed 1.6% down.
\nSingh said inventory losses, lower refining margins and higher forex losses dragged net profit for the 2019-20 financial year down to Rs 1,313 crore, or 92%, from Rs 16,894 crore in the previous financial year. IOC suffered inventory loss of Rs 12,531 crore in 2019-20 gainst inventory gain of Rs 3,227 crore in the previous fiscal. Foreign exchange losses stood of Rs 3,945 crore, up from a forex loss of Rs 1,503 crore in the previous fiscal.
\nGross refining margin in 2019-20 stood at $0.08 per barrel as compared to $5.41 a barrel in the previous year. The core GRM for current year after offsetting inventory loss\/ gain comes to $2.64 per barrel, he said. Revenue also fell to Rs 5,66,950 crore from Rs 6,05,932 crore in 2018-19.
\nSingh expected fuel demand to be back at 90% of the pre-lockdown period by month-end or in the first fortnight of July. Jet fuel, however, will take more time to reach levels seen before the lockdown. Overall demand may reach full pre-lockdown levels only by the end of the year, he said.<\/p>\n","protected":false},"excerpt":{"rendered":"
NEW DELHI: India\u2019s largest oil refiner and fuel retailer IndianOil Corporation on Wednesday reported a loss of Rs 5,185 crore loss in the fourth quarter of 2019-20, against a profit of Rs 6,099 crore in the year-ago period, due to massive inventory losses on account of oil price crash. Company chairman Sanjiv Singh said the company recorded an inventory loss of Rs 14,692 crore in the January-March period as compared to an inventory gain of Rs 1,787 crore in the same period a year back, company chairman Sanjiv Singh said. As a result, the company also posted a negative gross […]<\/p>\n","protected":false},"author":44,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[130,219,137],"tags":[],"class_list":["post-359303","post","type-post","status-publish","format-standard","hentry","category-newspapers","category-oil-gas-the-times-of-india","category-the-times-of-india"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/359303","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=359303"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/359303\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=359303"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=359303"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=359303"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}