State-owned energy company Indian Oil has reported a net profit of Rs26.43bn in Q1 2024, a significant decrease from Rs137.5bn in the same period last year, marking an 80.7% fall.
Indian Oil’s revenue from operations hit Rs2.16trn in Q1 2024, a decline from the Rs2.21bn seen in the same quarter of the previous financial year.
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Its Q1 sales, including exports, amounted to 25.25 million tonnes (mt).
Refining throughput stood at 18.17mt, while the throughput of the company’s nationwide pipeline network, including gas pipelines, was 25.81mt, the company said in a statement.
Its earnings before interest, taxes, depreciation and amortisation (EBITDA) for the first quarter was Rs86.36bn, with margins of 4.5%. During the April–June 2024 period, total expenses increased to Rs2.13trn from Rs2.03trn in the same period last year.
The company’s Q1 2024 results saw an average gross refining margin (GRM) of $6.39 per barrel (bbl), lower than the $8.34/bbl recorded in the same quarter of the previous financial year. After accounting for inventory loss/gain, the core GRM for the current quarter stands at $2.84/bbl.
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By GlobalDataAccording to the International Energy Agency (IEA), Indian oil companies are making significant investments in refining to meet the country’s increasing oil demand. The IEA’s forecast suggests that the country’s demand will reach 6.6 million barrels per day (mbbl/d) in 2030, up from 5.5mbbl/d in 2023.
India has increased its oil imports by 36% over the past decade to 4.6mbbl/d. Due to the energy crisis and the Russian invasion of Ukraine, action to sustain supplies in case of market disruptions has recently gained additional momentum.
To reduce crude oil imports, the government is endorsing using natural gas, renewable and alternative fuels, and enhancements in energy efficiency and refinery operations. Offshore Technology reported on 30 July that the Indian Government assigned around Rs75bn to acquire seismic data and drill stratigraphic wells.
Nevertheless, the IEA stated in its February oil report that from 2023 to 2030, India is expected to account for the largest share of global oil demand growth, surpassing China.
