New Delhi: Indian Oil Corp, the nation’s biggest oil firm, today reported a net loss of Rs7,047.13 crore for the second quarter ended 30 September, 2008, mainly on account of huge revenue loss on sale of petrol, diesel, LPG and kerosene.
IOC posted a net loss of Rs7,047.13 crore in July-September quarter as against a net profit of Rs3,817.75 crore in the same period previous year, the company said in a statement here.
The losses were despite the company receiving Rs14,473.54 crore by way of discounts on purchase of crude oil and produced from companies like Oil and Natural Gas Corp (ONGC) and Oil India Ltd and Rs25,082.38 crore by way of oil bonds from the government.
Government compensates refiners IOC, Bharat Petroleum and Hindustan Petroleum for half of their revenue loss on sale of petrol, diesel, domestic LPG and kerosene below the production cost by way of oil bonds. Another one-third of the losses are met by companies like ONGC and OIL.
Despite these, BPCL yesterday posted a net loss of Rs2,625.17 crore in second quarter on top of Rs1,066.70 crore in April-June. HPCL ended Q1 with a loss of Rs888.12 crore.
“Consequent to non-revision of retail selling prices in line with international prices, the company has suffered net under-realisation (net revenue loss after taking bonds and upstream assistance into account) of Rs12,271.03 crore during April-September,” IOC said. It had suffered Rs3,507.74 crore net under-realisation in the same period last year.
IOC said net sales or income from operations grew by 50% to Rs74,322.01 crore in July-September quarter on increased fuel sales.