Indian Oil's 1Q Profit Up By Half

State-owned Indian Oil Corporation August 11 reported a 51% year on year increase consolidated profit during April-June (1Q 2019) on account of higher inventory gains.

The company's profit during the quarter was rupees 71.76bn ($1bn) as against rupees 47.36bn in the corresponding quarter of the previous year. Standalone profit for the quarter increased to rupees 68.31bn as against rupees 45.49bn in the year ago period. Indian Oil’s revenue during 1Q was rupees 1.52 trillion, higher than revenue of rupees 1.32 trillion in the same quarter of previous year.

The company is planning to invest rupees 200bn ($2.9bn) in its city gas distribution (CGD) projects in India, Press Trust of India reported company CEO Sanjiv Singh saying in New Delhi August 13. Indian Oil has bid aggressively the ninth CGD bidding round which was launched by the Indian government earlier this year. During the ninth round 86 areas covering 174 districts in 22 states and union territories were open for bidding. Technical bids were opened by Indian downstream regulator Petroleum and Natural Gas Regulatory Board (PNGRB) during July 12-18: a total of 406 bids were received for the 86 areas; and 35 entities participated in the process.

"We put in bids for 57 out of the 86 geographical areas (or cities) put on offer in the 9th CGD bid round. Out of this, we expect to net 20 GAs, plus or minus one or two," Singh said, adding investment in these 20 areas would be at least rupees 200bn spread over five to eight years.

Indian regulator PNGRB has announced winners for 78 areas so far. Indian Oil alone has won licence to develop CGD infrastructure in seven areas. The company also bid for licences jointly with private sector firm Adani Gas. The joint venture has won licences to develop CGD infrastructure in nine areas. Adani Gas has won the highest number of city gas distribution (CGD) licences so far in the ninth CGD bid round.