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BW Businessworld

Fuelling Growth

Indian Oil maintained its leadership in aviation fuel during the year with a market share of 63.8 per cent among PSUs and 60.5 per cent across industry.

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Matching the pace of energy demand in the country, Indian Oil posted yet another robust year of performance in FY2019-20, retaining its numero uno position in the downstream petroleum sector and strengthening its new verticals of gas, petrochemicals and E&P.

The corporation continued with its legacy of putting the nation first as it expanded its business verticals by integrating alternative and renewable sources in its energy value chain in a big way.

The company’s biggest success in FY2019-20 was the seamless pan-India transition from BS-IV grade fuels directly to BS-VI fuels across its refinery pipelines marketing network by March 16, 2020, a full fortnight ahead of the target date of April 1, 2020.

IOCians led the country’s oil sector with unwavering focus and coordinated thrust by implementing a Rs 17,000 crore mega BS-VI upgradation programme across all its refineries, which cascaded into an inter and intradivisional team spirit. With this, Indian Oil became the first oil PSU to be fully BS-VI compliant right from the refineries to the pump nozzles.

Indian Oil sold 78.54 MMT of petroleum products in FY2019-20; its refineries clocked a throughput of 69.42 MMT, which was more than the plated capacity, and 2.8 MMT of naphtha was processed by Panipat Naphtha Cracker; the company’s pan-India pipelines network registered a throughput of 85.35 MMT of crude oil and petroleum products. The total gas sale in 2019-20 was around 4.72 MMT as against 3.96 MMT in 2018-19, clocking a growth of 19 per cent on a year-on-year comparison. The sale of petrochemicals in 2019-20 was 2.08 MMT as compared to 2.42 MMT in 2018-19 due to closure of PTA plant at Panipat for six months. The share of production from its eight producing E&P assets in 2019-20 was 4.252 TMToe.

CAPEX: The company incurred a capital expenditure of more than Rs 29,000 crore during FY2019-20, which was about 113 per cent of the overall capex target. The company’s board also approved an investment proposal of Rs 8,410 crore for CGD projects in nine geographical areas (GAs). These projects were awarded to the company by PNGRB as part of the 10th round.

With this, the company’s total capex in CGD business would be Rs 13,873 crore in 17 GAs over the next eight years, Shrikant Madhav Vaidya, Chairman, IOC told shareholders in the company’s latest annual report.

Indian Oil maintained its leadership in aviation fuel during the year with a market share of 63.8 per cent among PSUs and 60.5 per cent across industry. It registered a growth of 0.6 per cent despite an overall de-growth of 0.4 per cent. This was achieved despite closure of Jet Airways with whom IOC had almost 85 per cent business share.

The total gas sale in 2019-20 was approximately 4.72 MMT as against 3.96 MMT in 2018-19, a year-on-year growth of 19 per cent. Petrochemicals sales in 2019-20 stood at 2.08 MMT as compared to 2.42 MMT in 2018-19 due to closure of PTA plant at Panipat for six months. The share of production from its eight E&P assets in 2019-20 was 4.252 TMToe.

The petroleum products major ensured uninterrupted fuel supply for the Indian Air force relief teams during natural calamities, including Cyclone Fani in Odisha and Cyclone Vayu in Gujarat. “IOC takes pride in meeting 90 per cent of ATF requirements of the Indian Air Force. The Indian Air Force has also reposed it confidence in Indian Oil by renewing the supply contract for another two years, till March 31, 2022,” Vaidya said.