Economic news

Indian Oil Posts Quarterly Profit Rise on Lower Crude Prices

Feb 5 (Reuters) - Indian Oil Corp (IOC), the country's top refiner, reported a more than four-fold jump in third-quarter profit on Thursday, boosted by stronger refining margins as crude prices dropped.

The state-owned firm's standalone net profit rose to 121.26 billion rupees ($1.34 billion) for the quarter ended December 31, from 28.74 billion rupees a year earlier.

IOC's April-December gross refining margin - the profit from making refined products from one barrel of oil - improved to $8.41 per barrel from $3.69 reported a year ago.

Revenue from operations rose 7% to 2.32 trillion rupees.

For further results highlights, click here.

KEY CONTEXT

Global brent crude oil prices - used by refiners as a raw material - dropped more than 9% during the October-December quarter, which helped push the margins.

Fuel consumption in India, the world's third-largest consumer and importer of oil, hit a record high in December, after hitting a six-month peak in November.

Fuel consumption rose 5.5% and 5.3% year-on-year in November and December, respectively, after a 0.4% drop in October, according to data from the Petroleum Planning and Analysis Cell (PPAC).

PEER COMPARISON

   

Valuation (next 12 months)

Estimates (next 12 months)

Analysts' sentiment

 
 

RIC

PE

EV/EBITDA

Revenue growth (%)

Profit growth (%)

Mean rating*

No. of analysts

Stock to price target**

Div yield (%)

Indian Oil Corporation

(IOC.NS)

9.18

6.43

2.33

5.29

Buy

20

1.00

3.76

Hindustan Petroleum Corp

(HPCL.NS)

6.85

5.71

-1.52

-1.75

Buy

17

0.89

2.23

Bharat Petroleum Corporation

(BPCL.NS)

8.11

5.97

1.53

-10.83

Buy

22

0.91

5.88

Reliance Industries

(RELI.NS)

22.34

11.08

7.44

8.73

Buy

34

0.85

0.38

* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

OCTOBER-DECEMBER STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 90.1850 Indian rupees

Reporting by Anuran Sadhu in Bengaluru; Editing by Rashmi Aich

Source: Reuters


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