Indian Oil slips into net loss of Rs33.9bn

26 July 2010 06:44  [Source: ICIS news]

MUMBAI (ICIS news)--State-owned Indian Oil Corp (IOC) has posted a first-quarter net loss of Indian rupees (Rs) 33.9bn ($723m), against a net profit of Rs36.8bn in the same period a year earlier, as it sold key petroleum products below market prices, it said in a statement over the weekend.

Net sales in the June quarter rose 23% year on year to Rs712.8bn, it said in a filing to the Bombay Stock Exchange.

Non-realisation of market-related prices for petrol, diesel, kerosene and liquefied petroleum gas (LPG - cooking gas) for the quarter was the main reason for the net loss, it said

State-owned oil companies are forced to sell petrol, diesel, kerosene and cooking gas at government-determined rates which are often below cost.

The company’s petrochemical division, however, posted a doubling of operating profit to Rs4.8bn from Rs 2.3bn in the year ago period due to increased output and improved sales, the statement said.

Net sales for the petrochemicals division rose almost 11% to Rs8.5bn from Rs7.7bn year-on-year, it added.

($1 = Rs46.92)

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By: Priya Jestin

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