All is well with oil

QUARTERLY RESULT ANALYSIS: December 2004

IOC's refining margins improved 16.95 per cent y-o-y to $5.45 per barrel. However, refining throughput was lower at 8.81 mmt, down 7.94 per cent due to a fire at Gujarat Refinery. The estimated loss due to the fire is Rs 250 crore and the unit is expected to return to normal by mid-April.

Under-recoveries on kerosene and LPG sales in the last quarter amounted to Rs 2,125 crore, up from Rs Rs 380 crore in the same quarter last year and up 35 per cent q-o-q.

Overall, IOC suffered a loss of Rs 500 crore on marketing of petrol and diesel.

Other income grew 170.99 per cent to Rs 654.4 crore, thanks to the higher income from dividends and forex gains. Inventory gains amounted to Rs 350 crore.

IOC's operating profit declined 67.02 per cent to Rs 1,204.76 crore, with operating profit margin dropping to 3.29 per cent from 11.80 per cent a year-ago.  Refining margins are expected to remain strong for the next couple of quarters. Stripping off the value of Indian Oil