Indian Oil Corp (IOC), the nation's biggest oil company, today reported a net loss of Rs 898 crore in the September quarter as drop in international oil rates led to massive inventory loss.
The company suffered a net loss of Rs 898.46 crore, or (-) Rs 3.70 per share, in July-September against a net profit Rs 1,683.92 crore, or Rs 6.94 per share, IOC Chairman B Ashok said.
"The loss was mainly due to inventory of Rs 4,272 crore in Q2 as compared to an inventory gain of Rs 4,635 crore," he said.
This was because global oil prices slumped from USD 111 per barrel to USD 95.
IOC lost USD 1.95 on converting every barrel of crude oil into fuel as compared to a positive margin of USD 7.43 per barrel, he said.
A K Sharma, Director (Finance), IOC said the company lost Rs 12,215 crore in revenue in Q2, almost all of which was made good by way of cash subsidy from government (Rs 3,085 crore) and dole out from upstream firms like ONGC (Rs 9,098 crore).
"There was an unmet under-recovery (revenue loss) of Rs 32 crore in Q2. Besides there is an unmet under-recovery Rs 1,145 crore in H1," he said.
Ashok said revenue rose 1.3 per cent to Rs 111,664 crore in Q2. Refineries processed 13.407 million tons of crude as compared to 13.344 million refinery throughput in Q2 of last fiscal.
Sales were up 4.5 per cent to 17.126 million tons while pipeline throughput rose 5.9 per cent to 19.039 million tons.
