Indian Oil Corporation, the Country’s biggest oil firm on Friday 31 July 2020 reported a revenue drop of 69 percent year-on-year to Rs.88,936 crores. Indian Oil Corporation reported a Net Profit of Rs.1911 crore in the first quarter ending June (April-June), a decline of 46.85 percent from the same period last year, when the company posted a profit of Rs.3596 crore. Revenue from operations fell to 88936 crores during the quarter as compared to Rs.1.5 lakh crore, a year ago.
Its refineries processed 25 percent less crude oil compared to its previous year, at 12.9 million tonnes in the first quarter of 2020-21 fiscal. Indian Oil Corporation said it lost $1.98 on turning every barrel of crude oil into fuel in the April-June Period as compared to a gross refining margin of $4.69 a barrel in Q1 of 2019-20.
The impact of corona virus outbreak could be felt in Indian Oil’s Margin too. The core GRM after offsetting inventory loss or gain comes to $4.27 per barrel. The outbreak of corona virus globally and in India has impacted businesses and economic activities in general. The spread of covid-19, along with nation-wide lockdown starting from March 25, 2020, has caused a serious threat and crisis to human lives and resulted in a reduction in global demand and disruption in the supply chain, which have forced the businesses to restrict or close their operations in short term.
With most part of the quarter being spent under the covid-19 lockdown where the vehicular movement was sparse, IOC Fuel sales fell 29 percent to 15.25 million tonnes.
Global crude oil prices tumbled as a result of an all-out price between Russia and Saudi-Arabia-led OPEC and falling demand amid the novel coronavirus outbreak. Oil marketing Companies had been adjusting their prices daily till the beginning of lockdown period in March, but through April and May, prices remain unchanged even as the global crude oil prices tumbled.
This is because the central government used the fall in global prices to hike taxes and shore up its revenue. But as crude recovered retail prices of petrol and diesel rose, starting June 7, retail price went up for 22 consecutive days. In Delhi, the price of petrol and diesel rose 13% and 16% during the period to Rs.9.13 and Rs.11.1 a litre, respectively.