Earnings Review
IOC's Jul-Sept PAT plummets 98% YoY on weak refining margin
This story was originally published at 22:22 IST on 28 October 2024
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--IOC Jul-Sept net profit INR 1.80 bln
--Analysts saw IOC Jul-Sept net profit INR 39.55 bln
--IOC Jul-Sept net profit INR 1.80 bln vs INR 129.67 bln
--IOC Jul-Sept revenue INR 1.95 tln vs INR 2.02 tln year ago
--IOC Jul-Sept one-time income INR 11.57 bln
--IOC Jul-Sept total expenses INR 1.98 tln vs INR 1.86 tln year ago
--IOC Apr-Sept net profit INR 28.23 bln vs INR 267.18 bln year ago
--IOC Apr-Sept revenue INR 4.11 tln vs INR 4.23 tln year ago
--IOC Apr-Sept avg GRM $4.08/bbl vs $13.12/bbl year ago
--IOC Jul-Sept refineries throughput 16.74 mln tn vs 17.77 mln tn year ago
--IOC Jul-Sept pipelines throughput 23.99 mln tn vs 23.87 mln tn year ago
--IOC Jul-Sept domestic sales 21.93 mln tn vs 21.94 mln tn year ago
--IOC Jul-Sept petroleum products sales INR 1.83 tln vs INR 1.91 tln yr ago
--IOC Jul-Sept petrochemicals sales INR 68.13 bln vs INR 66.13 bln yr ago
By Apratim Sarkar
MUMBAI – Indian Oil Corp. Ltd.'s net profit saw a massive decline in the September quarter, led by weak gross refining margin and continued losses in the domestic petroleum gas business. The company's top line, bottom line, and gross refining margin all missed analyst estimates.
The company's net profit for the latest quarter was INR 1.8 billion, down significantly from INR 129.67 billion in the year-ago quarter. The revenue shrank around 4% on year to INR 1.95 trillion in the September quarter. Analysts had expected the company to report a net profit of INR 39.6 billion and a revenue of INR 1.8 trillion.
The company's net profit fell 93% sequentially, and revenue was down 9.6%. Indian Oil's other income for the latest quarter was INR 13.75 billion, up 40% on year from INR 9.82 billion in the year-ago period. The company reported a one-time income of INR 11.57 billion for the quarter.
The company's average gross refining margin for Jul-Sept was $4.08 per barrel, almost one-third of the $13.12 per barrel in the same quarter in the previous year. Kotak Institutional Equities had forecast the oil major's gross refining margin for the September quarter at $5 per barrel. Gross refining margin is the difference between the price of crude oil and the total value of petroleum products produced by a refinery on a per-barrel basis.
In Jul-Sept, the company's total expenditure was INR 1.98 trillion compared with INR 1.86 trillion in the year-ago quarter. Finance cost rose to INR 24.14 billion, up 30.8% on-year. The cost of raw materials in the September quarter was INR 975.18 billion, up 7.6% on-year as crude oil prices rose sharply from last year.
The company's Apr-Sept net profit was INR 28.23 billion, down nearly 90% on year. The company's top line in Apr-Sept was INR 4.11 trillion, lower than INR 4.23 trillion in the year-ago period.
The company's domestic sales of petroleum products were at 21.93 million tonnes in the September quarter, down from 21.94 million tonnes in the year-ago quarter. Exports in the latest quarter fell to 1.03 million tonnes from 1.30 million tonnes in the year-ago quarter. Exports in the previous quarter were 1.19 million tonnes.
Indian Oil's refinery crude oil throughput declined to 16.74 million tonnes in the quarter ended September from 17.77 million tonnes in the year-ago quarter. The company's pipeline throughput marginally increased to 23.99 million tonnes from 23.87 million tonnes in the year-ago period.
The oil major's revenue from petroleum products for the quarter fell to INR 1.83 trillion from INR 1.91 trillion in the year-ago period. The revenue from petrochemical products for the quarter increased to INR 68.13 billion from INR 66.13 billion in the year-ago quarter. As of Sept. 30 the company had a cumulative net negative buffer of INR 88.70 billion as the retail selling price was less than the market-determined price.
Monday, shares of Indian Oil closed 0.5% higher at INR 147.02 on the National Stock Exchange. End
US$1 = INR 84.07
Edited by Deepshikha Bhardwaj
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