Indian Oil posts Q2 profit beat on higher marketing margins

BENGALURU, Oct 31 (Reuters) - Indian Oil Corp Ltd (IOC) (IOC.NS) reported a better-than-expected quarterly profit on Tuesday, compared to a loss a year ago, as a decline in crude oil prices helped bolster marketing margins for the countrys top refiner.

The state-owned company posted a net profit of 129.67 billion rupees ($1.56 billion) for the quarter ended Sept. 30, compared with a loss of 2.72 billion rupees a year earlier.

Analysts on average expected a profit of 94.37 billion rupees, according to LSEG data.

Crude prices have fallen 14% in the quarter from a year ago, when refiners like IOC sold fuel for losses.

Indian fuel retailers have not revised pump prices for months to insulate consumers from global crude price fluctuations.

The company said its gross refining margin, or profit from converting a barrel of crude oil into refined products, was $13.12 per barrel in the six months to September, compared with $25.49 per barrel a year earlier.

Refining margin in Asia hit a 13-month high during the quarter.

While revenue from operations fell 11.4% to 2.02 trillion rupees, expenses more than offset the decline, dropping 19.5%.

Indian Oil, along with its unit Chennai Petroleum (CHPC.NS), controls about a third of Indias five million-barrels-per-day refining capacity.

Last week, smaller peer Bharat Petroleum Corp (BPCL.NS) also reported a profit compared to a loss, a year ago.

IOC shares, which are up over 17% so far this year, were up 1.6% after the results.

($1 = 83.2404 Indian rupees)