IOC to pump Rs 43,250 crore in 11th FYP

New Delhi, May 28 (UNI) State-run integrated oil marketing company IndianOil Corporation Ltd (IOC) today said its capital expenditure for the 11th plan period (2007-12) is fixed at Rs 43,250 crore.

''The company will invest Rs 6,518 crore during the current fiscal in various verticals. Nearly 70 per cent of the capital expenditure will be utilised in IOC's core business of refinery and petrochemicals,'' company's Chairman S Behuria told reporters here.

The investment will be met partly through internal accruals and bank loans, he added.

''We are going to raise 200 million dollars through loan from the US securities with a green-shoe-option of 100 million dollars more at a coupon rate of 6.12 per cent,'' Director (Finance) S V Narasimhan said.

The repayment will be made in next 9-11 years, he added.

The capex for 2006-07 was Rs 3,732 crore.

Meanwhile, the company while announcing the financial results for the fiscal ended March 2007, said its turnover crossed Rs 2,00,000 crore, out of which one billion dollar was generated from its new business of gas and petrochemical consulting.

Its net profit for the period stood at Rs 7,499 crore as compared to Rs 4,915 crore during the corresponding period last fiscal, after considering the compensation of Rs 13,943 crore in the form of oil bonds issued by the government and sale of 20 per cent of IOC equity holding in ONGC.

''The total net under recovery on account of price under realisation on petrol, diesel, PDS kerosene and LPG in the financial year 2006-07 is Rs 2,190 crore, after considering the compensation received in the form of oil bonds, subsidy sharing by upstream companies, Centre and discounts from refineries,'' said Mr Behuria.

''Our refining margins are good and the rupee appreciation has helped us a lot in improving the numbers. If it continues, the company is set to reap benefits in the coming quarters,'' Mr Behuria said adding that the current refining margins stands at 4.2 dollars per barrel.

The company recorded 55 million tonnes of product sales in the period.

Out of this total Capex outlay, Rs 25,215 crore will be put in refineries and AOD, Rs 11,870 crore on petro chemicals and Rs 3,275 crore on gas, exploration and production respectively.

''About Rs 1,290 crore have been earmarked for pipelines and Rs 1,600 crore for marketing and R&D,'' Mr Behuria told reporters.

However, the company recorded a 60.06 per cent decline in net profit at Rs 1,609.67 crore for the fourth quarter ended March 31, 2007 as against Rs 4,030.57 crore in the same quarter last year.

The total income of the state-run stood at Rs 55,412.07 crore for Q4FY07 as compared to Rs 51,420.3 crore during the corresponding period a year ago.

During the last fiscal, projects over Rs 10,000 crore were commissioned and projects worth Rs 50,000 crore were under implementation.

In the natural gas business, IOC is planning a joint venture with state-run Gas Authority of India Ltd (GAIL) to supply gas in the eastern region.

Moreover, company's 18,000 tonnes per annum lube blending plant at Trincomalee, Sri Lanka will be operational by July, Mr Behuria said.

UNI