Oil companies upbeat about Q4 performance

New Delhi, Apr 8 (UNI) Domestic oil refining and marketing companies are upbeat about their financial performances during the last quarter ending March 31, 2007 on the back of a fall in global crude prices.

PSU oil majors BPCL and IOC witnessed their stocks gaining 1.18 per cent and 0.32 per cent, respectively on the last trading day while stocks of private sector petroleum majors Reliance Industries Ltd and Reliance Petroleum went up 1.68 per cent and 4.82 per cent a day before.

RIL posted a net profit of Rs 2,799 crore in the October-December quarter of 2006-07 as against Rs 1,776 crore in the same period last year, while HPCL clocked a net profit after tax at Rs 407.31 crore for the third quarter as compared to net loss of Rs 1,077.75 crore for the same quarter a year ago.

Refining majors are also expecting a rise in their refining margins by nearly two dollar per barrel, industry sources said.

This apart, there will be no inventory loss on crude oil this time.

Global crude prices soared last week on account of tensions in West Asia. The prices have since come down marginally following talks of a compromise between the UK and Iran.

Oil fell on Thursday after Iran's release of 15 British sailors and marines eased worries over crude shipments from the world's fourth-largest exporter.

The US crude had jumped above 68 dollars last week as some investors took the view that the standoff over Iran's detention of the Britons increased the risk of a disruption to oil shipments.

Meanwhile, India's refining capacity, which was pegged at 127 million tonnes per annum at the beginning of the financial year 2005-06, has gone up to 153 mtpa.

Capacity additions by private and state-run oil majors are also being undertaken. Reliance Petroleum is setting up a 29-mtpa refinery at Jamnagar, next to RIL's existing refinery. The project is expected to begin production by the end of next year.

PSU refining and marketing major BPCL is setting up a six mtpa greenfield refinery while HPCL is setting up a new refinery at Bhatinda with a capacity of nine mtpa.

UNI