Indian Oil posts Q3 net loss of Rs.961 crore

State-run Indian Oil Corp (IOC) Thursday posted a net loss of Rs.961.45 crore in the third quarter ending December owing to lower subsidy payment by the government on the sale of petroleum products.

“The company posted losses mainly on account of higher absorption of under recoveries on sale of sensitive petroleum products,” IOC chairman R.S. Butola said here announcing the results.

During the quarter in question, IOC lost Rs.20,697.62 crore on selling diesel, kerosene and cooking gas (LPG) below cost. The government reimbursed the oil marketer Rs.5,173 crore as cash subsidy, and it got another Rs.8,261 crore from national upstream companies like ONGC, leaving a gap of Rs.7,192 crore.

IOC had recorded a net profit of Rs.3,331.96 crore in the same quarter of the last fiscal.

The foreign exchange gain of Rs.1,133 crore in the quarter on account of the rupee strengthening against US dollar was negated by the uncompensated subsidy, the chairman said. IOC had lost Rs.1,295 crore in foreign exchange in the third quarter of last fiscal.

The company’s current rate of under-recovery, or loss, is Rs.7.39 a litre on diesel, Rs. 35.76 a litre on kerosene and Rs.656 per 14.2-kg LPG cylinder. “

“If we were to have been fully compensated, we would have made a net profit of Rs.6,500 crore in April-December,” Butola said.

IOC’s domestic sales of petroleum products fell marginally to 18.169 million tonnes from 18.573 million tonnes.

It processed 13.075 million tonnes of crude in its refineries during the quarter as against 14.208 million tonnes in the same quarter a year ago because of planned maintenance of some units.