The Hindu : Business : IOC net dips

Online edition of India's National Newspaper
Saturday, Oct 29, 2005

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Business

IOC net dips

Posts continued losses on fuel sales

NEW DELHI: The Indian Oil Corporation (IOC) reported a 23 per cent drop in its net profit at Rs. 949.72 crore in the second quarter ended September 30, 2005 on continued losses on fuel sales against Rs. 1,239.53 crore reported in the corresponding quarter in the previous year.

The company, which lost Rs. 5,627 crore on sale of petrol, diesel, LPG and kerosene in the April-September period, saw its profit fall to Rs. 895.49 crore in first six months of the current fiscal from Rs. 2,711.70 crore net profit posted in the corresponding period of the previous year.

IOC Chairman Sarthak Behuria said petrol was being sold Rs. 2.79 a litre below the cost while diesel was being under-priced by Rs. 3.48 a litre. LPG was being sold at a loss of Rs. 173.84 a cylinder and kerosene at a discount of Rs. 13 a litre. The firm had for the first time in its history posted a net loss of Rs. 54 crore in the April-June quarter on not being allowed to raise fuel prices in line with the imported cost.

IOC sales rose by 24.3 per cent to Rs. 43,737.16 crore in the second quarter from Rs. 35,182.16 crore. Sales improved to Rs. 86,130.61 crore in first half of 2005-06 from Rs. 70,809.25 crore. Mr. Behuria said gross refinery margins at $6.05 a barrel in April-September were lower than $7.15 a barrel GRM in the same period in the previous year.

PTI

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