IOCL Q2 Results Review – Weak operating metrics weigh on revenue: ICICI Securities | Techno Glob


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Oil Corporation of India Ltd reported a recurring Ebitda loss of Rs 88.4 billion and a net loss of Rs 123 billion for 23Q2 FY23.

Earnings missed estimates of Ebitda/profit after tax of Rs 24.7 billion/ Rs 63.2 billion, which was below market in the quarter.

IOCL reported an Ebitda of Rs 19.6 billion and a net loss of just Rs 2.7 billion, helped by a one-time subsidy of Rs 108 billion towards accumulated oil and gas supplies.

The reported oil gross refining margin of $18.5/bbl exceeded our estimate of $16/bbl. Production of 16.1 mt fell short of our estimate of 16.8 mt, down 13.3/bbl QoQ.

Petrol and diesel retail lost Rs 1/litre and Rs 13/litre respectively, and inventory losses of (our estimate) Rs 30 billion during the quarter also dragged down earnings.

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