IndianOil Performance ( Indian Oil Corporation Ltd )

June 1, 2011 - PRLog -- Indian Oil Corporation Ltd. (IndianOil), a Maharatna Company and the nation's largest commercial enterprise as also its highest ranked Fortune 'Global 500' company, has reported an excellent performance for the year 2010-11. Riding on a robust performance driven by the highest ever sales of petroleum products and high capacity utilization of refineries and pipelines, the Corporation has posted significant gains in new business areas of petrochemicals and gas. The year was marked by registering the highest ever turnover of Rs. 3,28,744 crore.

During the year, IndianOil maintained its leadership position in the industry on the basis of superlative performance on all operational indices. The overall sale of petroleum products grew by 3.9% and surpassed the industry growth rate. Capacity utilization of 102% was achieved by the largest refiner of the nation, and pipelines throughput of crude oil & petroleum products grew by 5.4%. The year also witnessed the successful commissioning of some of the Corporation's most ambitious projects such as the expansion of Panipat and Haldia refineries, Naphtha Cracker at Panipat, Hydrocracker at Haldia, fuel quality upgradation facilities, besides the sustained expansion of its marketing and pipeline network.

Financial Performance

IndianOil’s gross turnover (inclusive of excise duty) for the year 2010-11 touched Rs. 3,28,744.27 crore which is the highest ever. The profit after tax was Rs. 7445.48 crore. While the profit for the third quarter was Rs. 1634.76 crore, the same for the fourth quarter was Rs. 3095.16 crore which is an increase of 138.9%.

For the year 2010-11, the company’s Earnings Per Share (EPS) stands at Rs. 30.67 as compared to Rs. 42.10 for 2009-10. The total net under-recovery on account of price under-realisation on MS (upto June 25, 2010), Diesel, PDS, Kerosene and Domestic LPG in the financial year 2010-11 is Rs. 3803 crore as compared to a net under-realisation of Rs. 3159 crore in 2009-10.

For the year 2010-11, IndianOil has accounted for cash compensation of Rs. 22,604.84 crore, out of which Rs. 11,662.40 crore has been received during the year. In addition, the company has been granted discount of Rs. 16,703.73 crore received from upstream companies and CPCL, as per the under-recovery sharing mechanism.

The Board of Directors has recommended a dividend of Rs 9.50 per share.

The Gross Refining Margin for April- March 2011 is USD 5.95 per barrel as compared to USD 4.47 per barrel during the previous year and for the fourth quarter, it is USD 7.85 per barrel.

Core Performance

Marketing

IndianOil continued to maintain its dominance in the market clocking the highest ever level of sales at 66.8 million tonnes in the domestic market during the year 2010-11 while the overall POL sales including exports touched 70.8 million tonnes. The year was marked by IndianOil leveraging its formidable supply chain network to make available Bharat Stage-III and IV compliant fuels at pump nozzles across the country. Ethanol-blending of petrol commenced in December 2010.

In the high-volume, high-competition direct consumer business, IndianOil continued to be the leader while continuing to focus on penetration into rural areas through Kisan Seva Kendra (KSK) in retail sales. The Corporation commissioned 570 KSKs out of 820 new Retail Outlets commissioned during the year. Large format highway outlets were expanded and strengthened, together with automation of outlets and provision of state-of-the-art dispensing units to enhance customer satisfaction. 145 low-cost Indane distributorships were unveiled in rural areas across 13 states under the Rajiv Gandhi Gramin LPG Vitarak scheme.

In LPG, 44 lakh new customers were added during the year and the total customer strength crossed 618 lakh. The bottling capacity was enhanced during the year and the total capacity has touched 5,518 TMTPA. Boosted by KSK outlets, MS and HSD (Retail) registered a robust volume growth. IndianOil's Aviation Service maintained its leadership in all segments of the business, viz., national carriers, defence services, scheduled private airlines and international airlines. Fuel supplies to the new terminal T-3 at Delhi Airport commenced through JVs. New businesses were gained and long-standing business ties with core sector customers were further strengthened. For more details visit our site http://www.iocl.com/Aboutus/NaturalGas.aspx

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IndianOil Corporation Ltd is India's largest commercial enterprise. The IndianOil Group of companies owns and operates 10 of India's 20 refineries.