New Delhi: IndianOil Corporation posted a record profit of Rs 19,106 crore in 2016-17, marking a 70% increase over the previous year's figure, even as India's largest refiner-marketer pruned crude purchase under term contracts by 15% and raised spot buying to take advantage of price swings in an oversupplied global oil market.
The state-run company's profit jumped 85% in the March quarter to Rs 3,721 crore from Rs 2,005 crore on higher refining margin, inventory gains and operational efficiency, company chairman B Ashok told reporters on Thursday.
The company made an inventory gain of Rs 2,634 crore in the fourth quarter of 2016-17 against an inventory loss of Rs 3,417 crore in the previous corresponding period.
The company made $7.8 on refining each barrel of oil in 2016-17 against $5.1 in 2015-16. In the fourth quarter, the company's refining margins stood at $8.9, marking a sharp rise over $2.9 in the same period of 2015-16.
Part of this came from infusion of agility in the company's crude sourcing regime, which also partly contributed to inventory gains. "I am happy to share that we have brought down the time for finalising crude purchase from the spot market from 36 hours last year to two hours. We have also brought down our procurement under term contracts from 80% of our total purchase to 68%," Ashok said.
The state-run company's profit jumped 85% in the March quarter to Rs 3,721 crore from Rs 2,005 crore on higher refining margin, inventory gains and operational efficiency, company chairman B Ashok told reporters on Thursday.
The company made an inventory gain of Rs 2,634 crore in the fourth quarter of 2016-17 against an inventory loss of Rs 3,417 crore in the previous corresponding period.
The company made $7.8 on refining each barrel of oil in 2016-17 against $5.1 in 2015-16. In the fourth quarter, the company's refining margins stood at $8.9, marking a sharp rise over $2.9 in the same period of 2015-16.
Part of this came from infusion of agility in the company's crude sourcing regime, which also partly contributed to inventory gains. "I am happy to share that we have brought down the time for finalising crude purchase from the spot market from 36 hours last year to two hours. We have also brought down our procurement under term contracts from 80% of our total purchase to 68%," Ashok said.
