IOC: High Octane Performance

Indian Oil Corporation (IOC), the largest integrated and diversified energy company in the country has emerged at the top of BW Real 500 rankings for the second year in a row. The oil major was ranked second in the rankings published in 2021. 

The BW Real 500 is an annual ranking of listed companies based on various performance parameters during the previous financial year. 

IOC’s presence across the entire hydrocarbon value chain allows it to create sustainable business outcomes. Today, IOC accounts for the largest market share of India’s petroleum product consumption. As a ‘Maharatna’ company, it addresses the multiple energy needs of the nation with its integrated business model, leading from the front as a responsible energy major. 

A Superb Year

The year 2020-21 witnessed Indian Oil registering record profits. "During 2021-22 we once again surpassed our best, by notching up the highest-ever revenue and record net profit," said Shrikant Madhav Vaidya, Chairman, Indian Oil emphatically. During 2021-22, Indian Oil’s revenue from operations went up by over 41 per cent compared to the previous year, and net profit went up by nearly 11 per cent. "This growth is remarkable, and to put it in context, we must remember that even the year before, we notched up record numbers. This is an extraordinary feat that will surely inspire Team Indian Oil to aim for new benchmarks of operational excellence in the coming years," Vaidya added. 

In number terms, IOC reported its highest ever revenue of Rs 7,28,460 crore, up from Rs 5,14,890 crore in the previous financial year, while its net profit stood at Rs 24,184 crore, up from Rs 21,836.04 crore in the previous year. Its consolidated revenue, after including earnings of subsidiaries like Chennai Petroleum Corporation (CPCL), came in at Rs 7.36 lakh crore.

The oil refining and marketing giant’s journey towards a robust petrochemicals presence is also witnessing new highs every year. During FY22, its naphtha throughput touched 3.0 MMTPA, which was about 28 per cent higher than the target. IOC is India’s second-largest petrochemicals player, with a capacity of around 3.2 MMT. "With various projects in the pipeline at Gujarat, Barauni, Panipat and Paradip refineries, the present Petrochemical Intensity Index (PII) of about 5 per cent will go up to about 7 per cent by 2025 and 15 per cent by 2030," said Vaidya. 

Pipelines Prowess

The company's mammoth network of underground highways of more than 15,000 km is all set to increase with the completion of the 1,200-km-long Paradip-Hyderabad product pipeline. The IOC Board has also approved the establishment of a 1,033-km-long Mundra-Panipat crude oil pipeline with a capacity of 17.5 MMTPA to meet the enhanced crude oil requirement of Panipat Refinery, that is due for expansion from 15 MMTPA to 25 MMTPA. 

Fuel Retailing

Fuel retailing remains the company's prime focus area, and IOC is determined to make concerted efforts to retain its market leadership, both through network expansion and enhanced throughput per pump. During FY22, the company commissioned 2,521 fuel stations taking the total tally to 34,559, including the Kisan Seva Kendra. In a bid called by the National Highway Authority of India for wayside amenities (WSA), Indian Oil secured 10 out of 20 sites on the strategic greenfield Delhi-Mumbai Expressway, reinforcing its presence along major corridors.

Go Hydrogen

To meet the net-zero commitment, the Indian government has announced the green hydrogen and ammonia policy to boost green hydrogen production to 5 MMT by 2030 and make India an export hub for this clean fuel. IOC, says Vaidya, is committed to leveraging this policy support. Aligning with the national priority, Indian Oil will be producing green hydrogen in stages at the Mathura and Panipat refineries, the chairman explained.