The country’s largest oil company Indian Oil Corporation (IOC) on Friday said its net profit fell nearly 47 percent in the June quarter as oil demand and refining margins plummeted in the coronavirus epidemic. The standalone net profit of the company stood at Rs 1,910.84 crore or Rs 2.08 per share in the April-June 2020 quarter. This is 46.8 percent lower than the net profit of Rs 3,596.11 crore or Rs 3.92 per share in the same quarter last year.
Vehicles were almost not operating in the country due to lockdowns for most of the June quarter. Due to this, the company oil cell fell 29 percent to 15.5 million tonnes in the previous quarter. During this period, the oil refining of the company declined by 25 percent to 12.9 million tonnes.
$ 1.98 refining loss per barrel crude
The IOC said it incurred a loss of $ 1.98 in the April-June quarter to make oil from every barrel of crude. Whereas in the same quarter a year ago, every barrel crude refining was getting a margin of $ 4.69. Shares of the company closed at Rs 88.55 without any change on the BSE.
Operational revenue decreased by 40.76%
In the information given to the stock exchanges, the company said that its operating revenue declined by 40.76 percent to Rs 88,936.54 crore in the June quarter. It was Rs 150,136.70 crore in the same quarter a year ago. The company’s sales had fallen drastically amid a nationwide lockdown. But in June, sales again returned to near-normal levels.
“In terms of sales and refining capacity, we will not be back to the normal in the near future. Our refineries are operating at 75 percent capacity and I expect it to remain in that range of 70-75 percent for the rest of the financial year,” said S M Vaidya, chairman of IOC.
He said the company expected the international crude oil prices to be in the range of $40 a barrel during the second quarter and second half of the financial year.