Indian Oil Corporation (IOC) rose 2.81% to Rs 95.10 after the oil PSU said crude oil throughput at its refineries rose to 100% in November, with demand for petroleum products now close to pre-Covid levels.
In October 2020 this figure was 88%, and last year for the same period it was 99%, the company said in a statement on Thursday (10 December 2020).
As the Indian economy prepares to bounce back, the IOC has gradually raised the throughput of its refineries to the maximum capacity in six months from about 55% of rated capacity at the beginning of May 2020.
During November 2020, the sale of motor spirit (petrol) was 1.06 MMT, which is higher by 4% as compared to the same period last year. In the case of LPG, the demand has gone up by approximately 1.4% to 1.09 MMT as compared to the corresponding period last year.
Although HSD has registered a growth of 2% as compared on a month on month basis, it is still 9% less when compared on a year-on-year basis. ATF has also registered a growth of 4% as compared to October 2020 but is still 45% less when compared on a year-on-year basis.
IOC further said that with the growing consumption of white oils, petrol, diesel and ATF, the demand for black oils and speciality products like fuel oil, bitumen, petcoke and sulphur, is also improving enabling an increase in throughput of refineries.
Commenting on this increased demand for petroleum products, IndianOil chairman SM Vaidya said, "The Indian economy continues to witness the green shoots of revival. As we get closer to the COVID-19 vaccine roll-out, the fundamentals of the economy being strong, we see a rapid V-shaped recovery in the overall consumption of petroleum products All our project sites too are witnessing a revival in terms of construction activities."
IOC's segments include sale of petroleum products, sale of petrochemicals and other businesses. As of 30 September 2020, the Government of India held a 51.50% stake in IOCL while ONGC held a 14.20% stake in the company.
The company's standalone net profit surged over three times to Rs 6,227.31 crore in Q2 September 2020 from Rs 1,910.84 crore in Q1 June 2020. Revenue from operations rose 37.2% to Rs 85,610.51 crore in Q2 September 2020 from Rs 62,396.60 crore in Q1 June 2020.
The scrip has gained 12.01% in the past one month. However, on a year-to-date (YTD) basis, the stock is still down by 24.27% while the benchmark Sensex has risen 12.14% during the same period.
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