IndianOil Corporation limited (IOCL), country’s largest oil marketing company may see its turnover touch Rs 5,00,000 crore for the first time ever, in financial year 2014-15.
IOCL’s director, finance, P K Goyal during the company’s annual general meeting in Mumbai said company’s borrowings have declined to Rs 61,900 crore against Rs 86,263 crore in March 2014. “This will improve the bottom-line as well,” Goyal said during the annual general meeting of the company held in Mumbai.
IOCL clocked a turnover touched of Rs 4,57,553 crore in 2013-14, a jump of 10.3% over the previous year. Its net profit surged to Rs 7,019 crore, up 40.2% compared to 2012-13.
Turnover during the first quarter of this fiscal stood at Rs 1,24,956 crore. IOCL scrip was up 0.77% at Rs 355 on the Bombay Stock Exchange.
Ashok Balasubramanian, Chairman, IndianOil Corporation said the company is well placed to take advantage of diesel deregulation as and when that happens. “IOCL stands in good stead as we have taken all necessary steps to address that (diesel deregulation),” said Ashok.
IOCL is identifying location for setting up its 11 refinery in the country. “We have not identified where we would be setting a refinery. We are considering various options. We have teams for site identification and they are looking at various opportunities,” Ashok said adding that new refinery could take shape only in the later part of the 13th five year plan.
IOCL is planing a 15 million metric tonnes per annum green field refinery on the west coast. Total investment in the refinery could be at Rs 35,000-40,000 crore. IndianOil controls 10 of India’s 22 refineries.
On the exploration and production front, the company said though it is not a major player in exploration and production, its investment in Canada’s field will give it gas for its own projects. “We don’t expect our selves to become a major E&P player. It is only to take care of the company’s needs,” said Ashok. This March IOCL bought 10% in Canada-based Petronas’ natural gas fields for an undisclosed amount. Petronas will give IOCL the right to 1.2 million metric tons of liquefied natural gas per year for two decades.
IOCL’s overseas E&P portfolio includes nine blocks spanning Libya, Iran, Gabon, Nigeria, Timor-Leste, Yemen and Venezuela. IndianOil is associated with two successful discoveries in oil exploration blocks, one each in India and Iran. Commercial appraisal of these blocks is underway, it said on its website. IndianOil also farmed into an exploration block in Gabon along with Oil India Ltd. (OIL) as the operator. In addition, the IndianOil-OIL combine has acquired participating interest in a block in Nigeria.
The company said in terms of investment, it would do whatever needs to be done for expanding its city gas distribution network. “Regarding procurement plans, we are already sourcing natural gas through Petornet LNG at both, Dahej as well as Kochi. Gas sourcing is not an issue,” said Ashok.