IOC Posts Net Loss Of 329 crore, Refining Margin Declines Sequentially

Biggest OMC of the country, Indian Oil company has posted a net loss of 329 crore during quarter ending June 2016.  Riding high on the improved Gross Refinery Margin (GRM) over previous year, company has limited its net loss in comparison of Rs898 crore loss posted during same period last year. Total Income of IOC has decreased from Rs. 112121. croe for the quarter ended September 30, 2014 to Rs. 85961.50 crore for the quarter ended September 30, 2015 due to decline in crude prices during this year, showing a decline of 15.7%. Importantly company has earned whooping Rs 6435.7 crore profit during quarter ending June 2015.

GRM for the company during the first half of current fiscal remained at $5.67 a barrel as against just $0.09/bbl earned during the same period last year. Main reason for posting loss is the inventory loss that company has suffered during  the quarter coupled with forex losses during the period. Also GRM of the company has declined during second quarter to just 0.9/ bbl in comparison to $10.9/bbl earned during first quarter of current fiscal. As per management of the company, it has lost Rs 5137 crore during second quarter to inventory loss, whereas inventory loss was at Rs 4272 crore during same period last year. Company’s forex loss stands at Rs 1100 croe during the second quarter. Operating profit of the company nosedived  to Rs 695 crore from Rs 10,101 crore on sequential basis.