Indian Oil offers 1:1 bonus
- 2018-01-31 05:44:29
Indian Oil Corporation Ltd (IOC) on Tuesday announced a 1:1 bonus issue and a hefty interim dividend, offering a double delight to its investors.
The twin treats came on the back of a robust third-quarter results fuelled by inventory gains arising from a sharp rise in global oil prices and jump in refining margins.
Net profit in the October-December period this fiscal stood at Rs 7,883.22 crore, or Rs 16.63 per share, compared with Rs 3,994.91 crore, or Rs 8.43 a share, in the same period a year ago, IOC chairman Sanjiv Singh told reporters here.
Along with the bonus offer, the board of the nation's largest oil firm declared an interim dividend of Rs 19 per share.
"The variation in net profit is largely due to higher inventory gains as well as improved operative performance," Singh said.
The company booked an inventory gain of Rs 6,301 crore in the quarter ended December 31, 2017 compared with a gain of Rs 3,051 crore in the same period a year ago.
Inventory gain arises when a company buys crude oil at a particular price but by the time it is able to process it and take the fuel to market, the rates had moved up.
International oil prices have risen more than 30 per cent since Opec and non-Opec producers agreed to limit production from January 2017.