IOC's 180,000 crore capex-I: The bull run will continue for five more years?
Aug 07: Galvanized by higher profits, Indian Oil Corporation plans to fund its massive Rs 180,000 crore capex over seven years through internal accruals. 8Earnings are likely to be strong going ahead, now that the Paradip refinery has been fully commissioned. Higher complexity of the refinery will provide a better core GRM (of around $ 12/bbl) which will be at a premium to the Singapore benchmark. 8Current core GRM of IOC is at a reasonable 7.7/bbl though the eventual figure was dragged down by inventory loss. 8Given the galloping growth in demand for POL products in India, IOC will continue to invest heavily in new refining capacity. 8The capex run is likely to continue for the next five years or perhaps even more. Eventually however, the advent of disruptive technology will dramatically changes its business model. Click on Reports for more.