UpdateIOC’s Q4 op profit drops on increased costs

28 May 2008 11:32  [Source: ICIS news]

(Updates, adds details throughout)

MUMBAI (ICIS news)--Indian Oil Corp (IOC) posted a 91.4% year-on-year drop in its fourth-quarter operating profit to Indian rupees (Rs)5.1bn ($119m) on the back of rising feedstock prices, a company spokesperson said on Wednesday.

“Our margins have continuously been under pressure due to high crude prices in the range of $126-$129/bbl whereas we are not authorized to raise the price of our products in market, therefore, our profitability is suffering,” she told ICIS news.

For the quarter ending 31 March, the petrochemicals major reported a net loss of Rs4.1bn, compared with net profit of Rs16.1bn in the first quarter of 2007, while net sales rose 28.2% to Rs643.6bn, the firm added.

For the full year, IOC’s operating losses widened to Rs15.5bn compared with Rs15.1bn a year ago, the firm said.

The firm’s net sales rose 12.5% to 2,259bn for the full-year period, from Rs2,009bn, while its net profits dropped 7.1% to Rs69.6bn, from Rs75bn, IOC said.

Shares in the company were up 1.53% closing at Rs428 on Wednesday on the Bombay Stock Exchange.

($1 = Rs42.85)

Aaron Rodrigues contributed to this article

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