MUMBAI: nationalized oil marketing companies (OMCs) have put in so far as Rs 40,000 crore of liquidity back in the banking system by refunding their elevated price debt as the cost of crude oil softens in the global market.
Corroborating the move, Indian Oil Corporation (IOC) chairman B Ashok informed ToI, “At IOC on your own, we have condensed our debt by more than Rs 25,000 crore in the previous one year to under Rs 60,000 crore. Through this our interest outgo has came down to Rs 1953 crore as of above Rs 2800 crore a year former, thus adding to our profitability.”
Correspondingly, Bharat Petroleum Corporation (BPCL) has condensed its debt by above 31% to Rs 13,383 crore as on September 30, 2014 as of Rs 20,000 crore, six months back. BPCL’s tiny term borrowing decreased considerably as of Rs 8184 crores as on March 31, 2014 to Rs 999 as on September 30, 2014. This outcompeted in interest outgo for BPCL disappearing downward to Rs 129 crore as of Rs 324 crore a year back, adding to the prosperity.
Hindustan Petroleum Corporation (HPCL) as well has decreased its borrowings in excess of 26% to Rs 23,635 crore as of Rs 32,000 crore six months ago. HPCL’s instant borrowings bisects to Rs 7362 till September 30, 2014 as of above Rs 16,315 crore while on March 31, 2014.
Investment consultant S P Tulsian supposes despite diesel de-regulation as well as lower borrowing price, the prosperity of the OMCs will be impacted by inventory losses because of lessening crude oil costs.
Indian Oil Corporation (IOC) had accounted a loss of Rs 898 crore in the subsequent quarter ended September as next to a net income of Rs 1,600 crore in the year back epoch. This was essentially because of record loss of Rs 4,272 crore as contrasted to an inventory increase of Rs 4,635 crore in second quarter previous fiscal, when international oil prices slumped as of $111 per barrel to $95 per barrel.
This loss is about to widen going onward as crude oil slid by in so far as 30% in the third quarter unaccompanied leaving the OMCs to continue their fingers crossed to entrance the impact on their bottom-line as of essential collateral damage because of falling crude costs.