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AfrOil NEWSBASE’S ROUNDUP GLOBAL (NRG) AfrOil

NRG: Emerging bright spots

Even as major companies continue to report quarterly losses, world crude oil
prices have remained steady and some LNG markets are still heading for growth

COMMENTARY WELCOME to the latest edition of NewsBase’s quarter of financial year 2020-2021.
Roundup Global (NRG), in which our team of The company said on July 31 that its net
international editors provide you with a snap- profit for the April-June period slid 47% year
shot of some of the key issues affecting their on year to INR19.11bn ($254.1bn), compared
regional beats. Get the NRG Oil & Gas Editor’s with INR35.96bn ($478.1mn) a year earlier. The
Picks to your inbox every week for free. Just sign company attributed the weaker performance to
up here. inventory losses relating to March’s oil price col-
World crude oil prices appear to have gained lapse. Meanwhile, IOC’s revenue amounted to
some traction over the last week, with WTI futures INR889.37bn ($11.82bn) in the quarter, down
remaining above $40.00 per barrel and Brent crude from the INR1.5 trillion ($19.95bn) reported in
trading in the vicinity of $43.00 per barrel. the same three months of 2019-2020.
Nevertheless, a number of major companies The company’s gross refining margin (GRM)
have come out with bad news. Companies in India, also shrank from $4.69 per barrel in the first quarter
Canada and the US have all reported quarterly of 2019-2020 to just $1.98 per barrel between April
losses, largely owing to the disruptive effect of the and June of this year.
coronavirus (COVID-19) pandemic. IOC trimmed operating rates at its refineries
On a more upbeat note, several new deals have following the reintroduction of lockdowns in states
been signed in Europe, and Austria’s OMV is look- across the country, owing to a fresh surge of cases
ing to increase its stake in a petrochemical complex in June. (India reported nearly 55,000 new cases of
in the Middle East. Additionally, some LNG mar- coronavirus (COVID-19) on August 2, bringing
kets appear to be heading for growth this year. the country’s total to 1.75mn. Of that figure, 1.1mn
new cases were identified in July.)
Asia: IOC profits halved after oil collapse IOC chairman S M Vaidya said last week
State-run Indian Oil Corp. (IOC) has announced that capacity utilisation had averaged 69% in the
an almost 50% drop in its net profit for the first quarter.

P6 www. NEWSBASE .com Week 31 05•August•2020