Indian Oil’s Q3 profit nearly doubles to Rs7,883 crore on surge in global oil prices
Bengaluru: Indian Oil Corp. Ltd said its third-quarter profit nearly doubled, handily beating estimates, as the company booked higher inventory gains due to a sharp rise in global oil prices.
Oil prices have rallied by more than 30% since Organization of the Petroleum Exporting Countries (Opec) and non-Opec producers agreed to limit production from January 2017.
Indian Oil’s net profit surged 97% to Rs7,883 crore ($1.24 billion) in the quarter ended 31 December, well above the average estimate of Rs5,149 crore, Thomson Reuters data showed.
The company posted an inventory gain of Rs6,301 crore on crude and refined products in the quarter compared with Rs3,051 crore a year ago, A.K. Sharma, director (finance) at Indian Oil, said at a press conference on Tuesday.
Average gross refining margin (GRM) improved to $8.28 per barrel in the April-December period from $7.36 per barrel in the year-ago period, the country’s top refiner said.
Excluding inventory gains, the company posted GRM of $7.42 per barrel for the quarter compared to $5.10 per barrel a year ago, said Chairman Sanjiv Singh.
Shares of Indian Oil rose as much as 5.7% before closing up 4.2% in a broader Mumbai market that ended 0.73% lower. Reuters
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