India’s state-owned oil marketing companies (OMCs) combined profit rose over 25-times year-on-year in the financial year 2023-24 even as they navigated rapidly evolving geo politics and wide fluctuations in crude prices. The combined net profit in FY 24 rose
543 per cent as compared with financial year 2013-14, the Ministry of Petroleum and Natural Gas said on Friday.
The OMCs not only ensured fuel availability at affordable rates, with one of the lowest fuel price inflation globally in India, but they have also rewarded the shareholders’ trust by posting commendable annual results. The combined profit of OMCs for FY 2023-24 stood at Rs 86,000 crore, over 25 times higher than the extraordinarily difficult previous fiscal year. For the full 2023-24 fiscal, Hindustan Petroleum reported a record net profit of Rs 16,014 crore as opposed to a loss of Rs 6,980 crore in the previous year.
However, it was IOCL which reported historical best refinery throughput and net profit in FY24, the Ministry says. Demonstrating an exceptional year, IndianOil recorded a net profit of 39,619 crore, the highest ever in the company’s history and over four-fold increase from the net profit of 8,242 crore in the previous year. This remarkable achievement is supported by a stellar operational performance across business verticals. The company achieved its highest ever sales volume reaching 97.551 million tonnes of products.
Its refining throughput soared to 73.308 million tonnes, coupled with a throughput of 98.626 million tonnes achieved through an extensive 19,500+ km pipelines network across the nation.
These figures stand as historical bests in the operational history of IndianOil. In alignment with its vision for a greener future, the company has resolved to set up a wholly owned subsidiary (WoS), to undertake low carbon, new, clean and green energy business, with an equity investment of 1,304 crore. As part of its sustainable energy vision, IndianOil plans to establish 1 gigawatt (GW) of renewable energy capacity across the country with an investment of 5,215 crore.
Bharat Petroleum’s profit after tax for FY 2023-24 came in at 26,673 crore, nearly 13-times higher than the previous fiscal year. Additionally, the company’s planned capital outlay of 1.7 lakh crore over 5 years under ‘Project Aspire’ underlines its commitment to creating long-term value for shareholders. Markets have reacted positively to the results with BPCL and HPCL share prices rising after the announcement of results.