New Delhi [India], August 31 (ANI): IndianOil's profitability remained under pressure in the first quarter of the current financial year as higher crude oil costs arising from the West Asia conflict weighed on earnings, Chairman A S Sahney said on Monday.
Addressing the company's 67th Annual General Meeting, Sahney said IndianOil's strong operating performance continued to provide confidence in the company's resilience.
"While profitability during the quarter remained under pressure from higher crude costs arising from the West Asia conflict, the strength of our operating performance gives us confidence in the underlying resilience of your Company," Sahney said.
Despite disruptions in global energy markets, IndianOil's refineries processed a record 19.17 million metric tonnes (MMT) of crude during the first quarter of FY27, at 109.4 per cent capacity utilisation. Its domestic market share in petroleum product sales also increased to 43.1 per cent.
Sahney said the company had responded to disruptions in West Asia by diversifying crude sourcing, realigning refinery operations and strengthening supply-chain coordination. Despite a significant shift away from Middle Eastern crude grades, IndianOil's refineries operated at above 100 per cent utilisation, while LPG production was increased by nearly 30 per cent within a short period.
Looking ahead, Sahney said IndianOil's refinery expansion projects at Panipat, Gujarat and Barauni would take its group refining capacity from 80.75 MMTPA to around 98 MMTPA.
"As India moves towards 300 MMTPA of refining capacity, IndianOil alone will contribute more than 40 per cent of the incremental capacity, strengthening the country's ability to meet rising energy demand while deepening our petrochemical integration," he said.
IndianOil is also looking to diversify its future growth engines. The company aims to increase natural gas sales by 1.5 times by 2030 and raise upstream integration to over 10 per cent by 2031. It is also expanding into renewables, green hydrogen, sustainable aviation fuel and other emerging energy businesses.
Indian Oil Corporation Limited is a state-owned energy company and India's leading fuel marketer. Its network includes nine refinery units, more than 20,000 km of pipelines, over 43,000 retail outlets and nearly 13,000 LPG distributorships across the country. (ANI)
IndianOil profitability remains under pressure from higher crude costs amid West Asia conflict: Chairman IOC
