IOC Q3 net up 29 pc at Rs 3,994.91 cr

State-owned Indian Oil Corp (IOC) today reported a 29 per cent jump in its third quarter net profit on the back of higher refinery margins and inventory gains.
Following the government diktat to pay additional dividend to make up for shortfall in disinvestment proceeds, the board of IOC declared an interim dividend of 135 per cent (Rs 13.5 per share).
Net profit in October-December quarter at Rs 3,994.91 crore, or Rs 8.43 per share, was 29 per cent higher than Rs 3,095.75 crore, or Rs 6.53 a share, in the same period a year ago.
The nation's largest refiner earned USD 7.79 on turning every barrel of crude oil into fuel in the third quarter as compared to a gross refining margin (GRM) of USD 5.96 in the same period of the previous fiscal, IOC Chairman B Ashok told reporters here.

Also, the rise in international oil prices meant the company had inventory gains as it imported oil at one rate but by the time it could process and turn it into fuel, the rates went up, resulting in higher realisation for the same stock.
IOC Director (Finance) A K Sharma said inventory gains on crude oil in the third quarter were Rs 1,758 crore and on products were Rs 1,292 crore, totaling to Rs 3,050 crore.

This compared with an inventory loss of Rs 4,485 crore (Rs 2,330 crore on crude oil and Rs 2,155 crore on product) in the corresponding period of the previous year.

Sharma said an additional provision of Rs 1,973.11 crore has been made towards entry tax demand on crude oil used by its refineries in states like Uttar Pradesh, Haryana, Bihar and Assam.
Sales soared to Rs 115,161.11 crore from Rs 96,783.11 crore in October-December period of 2015, Ashok said, adding domestic fuel sales was up by almost one million tonnes to 20.12 million tonnes, while exports more than doubled to 1.2 million tonnes.
Refineries processed 16.37 million tonnes of crude oil in the third quarter, up from 14.42 million tonnes.
The interim dividend will yield the government Rs 3,820.5 crore. The government, which owns 58.28 per cent of IOC, will also get dividend tax on top of this.

Ashok said IOC is looking at opportunities to sell fuel into Bangladesh and Myanmar and is also helping Vietnam to build its refineries.