Business

Indian Oil Wraps Up FY22 With Highest Ever Net Profit

  • For the fourth quarter of FY 2021-22, Indian Oil's product sales volumes, including exports, was 23.310 million tonnes.
  • The company, however, has reported a 31.4 per cent decline in standalone net profit at Rs 6,022 for the Q4’22 as compared to Rs 8,781 crore in Q4'21.

Swarajya StaffMay 18, 2022, 11:09 AM | Updated 12:38 PM IST
An Indian Oil petrol pump. (pic via Twitter)

An Indian Oil petrol pump. (pic via Twitter)


Higher refining margins and higher inventory gain have pushed state run Indian Oil Corporation Limited (IOCL)’s net profit for FY2021-22 to Rs 24,184 crore as compared to Rs 21,836 crore during the previous financial year. The company also reported revenue from operations of Rs 728,460 crore as compared to Rs 514,890 crore in the previous financial year.

Chairman of Indian Oil SM Vaidya attributes the achievement to IOC’s resolve to set new benchmarks of excellence even in the face of stiff challenges.

The company, however, has reported a 31.4 per cent decline in standalone net profit at Rs 6,022 for the fourth quarter of FY 2021-22 as compared to Rs 8,781 crore in the corresponding quarter of the previous financial year as a margin squeeze in petrochemicals and losses on auto fuel sales dragged down record refining margins during the current quarter.

The revenue from operations have moved up to Rs 206,461 crore in Q4 2021-22 as compared to Rs 163,733 crore in the same year-ago period, as per the financial results declared after the Board of Directors meeting.

Indian Oil, according to Vaidya, sold 86.407 million tonnes of products, including exports, during FY 2021-22. The refining throughput for FY 2021-22 was 67.665 million tonnes and the throughput of the corporation’s countrywide pipelines network was 83.248 million tonnes during the year. The gross refining margin for FY 2021-22 improved to $11.25 per bbl (oil carrying barrel is referred to as bbl) as compared to $5.64 per bbl in previous financial year. As reference, Canada and US measure crude in barrels having a capacity of 42 US gallons, which equals 159 litres.

For the fourth quarter of FY 2021-22, Indian Oil's product sales volumes, including exports, was 23.310 million tonnes. The refining throughput was 18.265 million tonnes and the throughput of the Corporation’s countrywide pipelines network was 22.061 million tonnes during the quarter. The Board has recommended issue of bonus shares in the ratio of 1:2, which means for every two existing shares investors hold, one new bonus equity share will be issued, subject to approval by the members of the IOC. The bonus shares, upon approval, will also be eligible for the final dividend.


Among Indian Oil’s upcoming projects with heavy spending are the ethylene glycol project at Paradip refinery with a project cost of Rs 5,654 crore which will help in consolidating the polyester business of the corporation by way of producing mono ethylene glycol which is used to manufacture polyester fibres, bottle grade chips and polyester film grade chips and a research and development-II campus at Faridabad with project cost of Rs 2,282 crore.

There are also pipelines on the anvil-like the Paradip Hyderabad project with cost of Rs 3,338 crore involving the laying of 1,212 km pipeline for transportation of petroleum products from Paradip to Hyderabad along with delivery facilities at Berhampur (in Odisha), Vizag, Achutapuram, and Vijayawada (in Andhra Pradesh) and Hyderabad (in Telangana).

The company will also carry out augmentation of the Paradip–Haldia–Durgapur LPG pipeline with its extension up to Patna and Muzaffarpur with a project cost of Rs 3,027.90 crore and layout the Rs 6,025 crore and 1,444 km long Ennore-Thiruvallur-Bengaluru-Puducherry-Nagapattinam-Madurai-Tuticorin R-LNG pipeline project. This will offer pumping facilities at Ramanathapuram and delivery of natural gas to various industrial and commercial customers as well as City Gas Distribution in the respective state/UTs.

On the cards is also a 517 km long capacity augmentation of the crude oil pipeline in Haldia-Barauni section of Paradip-Haldia-Barauni pipeline and conversion of existing twin pipelines from crude to other services involving a project cost of Rs 3,696 crore.

Besides these, the company has lined up laying, building, operating or expanding city or local natural gas distribution networks, an LPG import facility at Paradip, a new petroleum storage grassroot terminal at Malkapur in Telangana, and augmentation of LPG Import facility at Kandla.

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