IndianOil powers its way back to black with Rs 3,057-crore Q3 profit

National downstream hydrocarbon company IndianOil has reported a standalone net profit of Rs 9,163 crore on income from operations of Rs. 2,70,154 crore for the nine months ended December 31, 2015 as compared to a net loss of  Rs 1,012 crore on income from operations of Rs 3,43,694 crore during the corresponding period in the previous year. This is mainly due to higher refining and petrochemical margins and reduced inventory losses in the current period compared to corresponding previous period. 

IndianOil accounts for nearly half of India’s petroleum products market share, 35 per cent national refining capacity (together with its subsidiary Chennai Petroleum Corporation Ltd, or CPCL), and 71 per cent downstream sector pipelines through capacity. The Indian Oil Group owns and operates 11 of India’s 23 refineries with a combined refining capacity of 80.7 million metric tonnes per annum (mmtpa).

For the quarter ended December 31, 2015, IndianOil has reported a standalone net profit of Rs 3,057 crore on income from operations of Rs 83,462 crore. During the corresponding period of the previous year, the company reported a net loss of Rs. 2,637 crore on income from operations of Rs. 1,07,074 crore. 

The variation is mainly on account of higher refining margins and reduced inventory losses in the current quarter compared to corresponding previous quarter. The IndianOil Board of Directors declared an interim dividend of 55 per cent (Rs 5.50 per share).

“IndianOil’s product sales volumes, including exports, have increased by 3.7 per cent and stood at 59.149 mmt during the first nine months of fiscal year 2015-16 as against 57.042 mmt in the corresponding period of the previous fiscal,” said IndianOil Chairman B Ashok. “Indian Oil’s refining throughput has increased by 4 per cent to 41.675 mmt in the first nine months of the current fiscal compared to 40.081 mmt in corresponding period of the last fiscal. 

“The throughput of the corporation’s countrywide pipelines network has grown by 3.9 per cent to 59.429 mmt during the period April-December 2015 compared to 57.223 MMT in April-December 2014,” he added. Product sales volumes, including exports registered a growth of 1.9 per cent to 19.606 mmt during the third quarter of 2015-16 against 19.243 mmt in the corresponding period of the previous year. 

“Our refining throughput has grown by 4.5 per cent to 14.424 mmt during the current quarter compared to 13.808 mmt in the corresponding previous quarter. The throughput of the company’s countrywide pipelines network has also increased by 6.2 per cent to  20.492 mmt during the current quarter against 19.294 mmt in the corresponding quarter of the previous year,” informed Ashok.

The Corporation’s cross-country pipelines network for transportation of crude oil to refineries and finished products to high-demand centres spans over 11,220 km. With a throughput capacity of 80.49 mmtpa for crude oil and petroleum products and 9.5 mmscmd for gas, this network meets the vital energy needs of consumers in an efficient, economic and environment-friendly manner.