IOC stock rises 3% as Street expects refiner to make neat gains from crude price boil

Shares of gained as much as 3 percent on Tuesday as D-Street expects inventory gains due to higher crude oil prices to boost fourth quarter earnings.Inventory gains are registered from an appreciation in the value of inventory that a company holds.The company is due to declare its March quarter earnings later in the day.IOC’s stock has been gaining for the last two days and has risen 1.73 percent in the period. At 12:38 am, shares of IOC were trading 0.4 percent higher at Rs 122.6 on BSE.IOC Q4FY22 net profit declines due to petrochemical margin squeeze, loss in auto fuel saleIOC’s pre-tax earnings from the sale of petroleum products declined by 8 percent to Rs 8,251.29 crore in the March quarter, while that for its petrochemicals business fell 72 percent to Rs 570.18 crore.Ltd reported a 31.4 percent decline in the fourth quarter of 2021-22 (Q4FY22) to Rs 6,022 crore even as the company reported the highest ever net profit in the year ended March.The state-run oil marketing company reported revenue of Rs 2,06,461 crore during the quarter under review, as compared to Rs 1,63,733 crore logged in the corresponding quarter of the previous financial year. For the year 2021-22, the company reported a record high revenue of Rs 728,460 crore as against Rs 5,14,890 crore in the previous financial year, riding high on the surge in crude oil prices.The fourth quarter’s bottomline was dented by a margin squeeze in petrochemicals and a loss in auto fuel sales. For the most part of this quarter, IOCL, and other state-run oil marketing companies, left the price of auto fuel unchanged despite the benchmark crude oil prices soaring to a 14-year high of $140 a barrel in early March. While prices of fuel sold to bulk consumers and aviation turbine fuel were raised, retail prices of petrol and diesel were left unchanged for almost 137 days. The OMCs resumed increasing the prices only from March 22.IOC’s pre-tax earnings from the sale of petroleum products declined by 8 percent to Rs 8,251.29 crore in the March quarter, while that for its petrochemicals business fell 72 percent to Rs 570.18 crore. This was despite an increase in revenue from petroleum products to Rs 197, 724.49 crore in Q4FY22 from Rs 157,109.11 crore a year ago, and an increase in petrochemical revenue to Rs 8,009.59 crore, from Rs 6,382.61 a year ago.The company reported a robust refining margin in the quarter but the impact was offset by a narrowing of margin in petrochemicals and a loss in auto fuel sales.

The company said it would issue shares in the ratio of 1:2, i.e., one new bonus equity share of for every two existing equity shares.

The allocation is subject to the approval of shareholders through postal ballot. The Board has fixed July 1, 2022 as record date to determine the eligibility of shareholders to receive bonus shares.

Meanwhile, the oil marketing company said its consolidated net profit for the quarter ended March stood at Rs 6,645.72 crore, down 26.37 per cent from Rs 9,026.49 crore in the same quarter last year. Its revenue from operation, however, climbed 26.13 per cent from Rs 165,734.27 crore in the corresponding quarter last year to Rs 209,049.16 crore.Read more at:The board of the company also recommended a final dividend of Rs 3.60 per equity share having face value of Rs 10 each (pre-bonus), which translates into final dividend of Rs 2.40 per equity share having face value of Rs 10 each (post-bonus) for financial year 2021-22.The final dividend would be paid within 30 days from the date of declaration at the AGM. The final dividend is in addition to the Interim Dividend(s) of Rs 9.00 per share (pre-bonus) paid for the financial year 2021-22.  ..Indian Oil Corporation Limited (IOCL) on Tuesday reported 31.4 per cent decline in net profit at Rs 6,022 crore for the quarter ended 31 March, 2022. The government-owned oil and gas comapny had reported a net profit of Rs 8,781 crore in the year-ago period.The company’s revenue from operations rose 25.6 per cent to Rs 2.06 lakh crore in the quarter under review from Rs 1.64 lakh crore in the same quarter last fiscal. IOC revenues do not contain the GST element.The company’s Average Gross Refining Margin (GRM) for the year April-March 2022 is $11.25 per bbl (April- March 2021: $5.64 per bbl). The core GRM or the current price GRM for the year April – March 2022 after offsetting inventory loss/ gain comes to $7.61 per bbl, OIC stated in a regulatory filing.Further, the company’s board has recommended issue of bonus shares in the ratio of 1:2 i.e. One new bonus equity share of Rs 10 each for every Two existing equity shares of Rs 10 each fully paid up subject to the approval of shareholders through postal ballot. The Board has fixed 1 July 2022 as record date to determine the eligibility of shareholders to receive bonus shares.A bonus issue, also known as a scrip issue or a capitalization issue, is an offer of free additional shares to existing shareholders. A company may decide to distribute further shares as an alternative to increasing the dividend payout.IOC also stated that its Board has recommended a final dividend of Rs 3.60 per equity share, which translates into final dividend of Rs 2.40 per equity share (post-bonus) for financial year 2021-22, subject to the approval of the shareholders of the company. The final dividend would be paid within 30 days from the date of declaration at the AGM. The final dividend is in addition to the Interim Dividend(s) of Rs. 9.00 per share (pre-bonus) paid for the financial year 2021-22. The record date for payment of final dividend would be fixed and intimated in due course, it added.Indian Oil Corporation Limited (IOCL) on Tuesday reported 31.4 per cent decline in net profit at Rs 6,022 crore for the quarter ended 31 March, 2022. The government-owned oil and gas comapny had reported a net profit of Rs 8,781 crore in the year-ago period.The company’s revenue from operations rose 25.6 per cent to Rs 2.06 lakh crore in the quarter under review from Rs 1.64 lakh crore in the same quarter last fiscal. IOC revenues do not contain the GST element.The company’s Average Gross Refining Margin (GRM) for the year April-March 2022 is $11.25 per bbl (April- March 2021: $5.64 per bbl). The core GRM or the current price GRM for the year April – March 2022 after offsetting inventory loss/ gain comes to $7.61 per bbl, OIC stated in a regulatory filing.Further, the company’s board has recommended issue of bonus shares in the ratio of 1:2 i.e. One new bonus equity share of Rs 10 each for every Two existing equity shares of Rs 10 each fully paid up subject to the approval of shareholders through postal ballot. The Board has fixed 1 July 2022 as record date to determine the eligibility of shareholders to receive bonus shares.NEW DELHI: Long spells of fuel price freeze amid rising crude dragged down state-run s net profit by more than 31% to Rs 6,021.8 crore in the fourth quarter of 2021-22 from Rs 8,781.3 crore a year ago.But still, India’s largest oil refiner and fuel retailer closed the financial year with highest-ever profit of Rs 24,184 crore, 10% higher than Rs 21,836.04 crore posted in 2020-21.
Despite the under-recovery on petrol and diesel, the company on Tuesday reported standalone revenue of Rs 7.28 lakh crore — excluding GST (goods and services tax) on products that goes to the exchequer — during the fiscal, the highest for an Indian company.It pegged consolidated revenue, including those of subsidiaries, even higher at Rs 7.36 lakh crore.Reliance Industries, billionaire Mukesh Ambani’s oil, petrochemicals, telecom and retail conglomerate, had last week reported a revenue of Rs 7.92 lakh crore in 2021-22. But this included GST on products and services that is to go to the government. The company’s net profit for the fiscal stood at Rs 60,705 crore.IndianOil also posted record refining margin of $18.5 per barrel in the January-March quarter against $10.6 in the previous corresponding period on the back of high crude prices. But core GRM (gross refining margin) after excluding inventory gains stood at $13.5 a barrel, as opposed to $2.5 a year ago, due to lower margins on naphtha and under-recovery on petrol, diesel and domestic LPG (common household cooking gas) sales.IndianOil and other state-run fuel retailers had left pump prices unchanged for almost five months even after crude prices hit 14-year high. They raised prices by Rs 10 a litre in instalments after March 22 and have not revised retail rates since April 6.Pre-tax earnings from the sale of petroleum products fell 8% to Rs 8,251 crore, while the same from the petrochemicals business was down 72% to Rs 570 crore, the filing showed.