HPCL profit rises 22%
New Delhi: Hindustan Petroleum Corp Ltd (HPCL) has reported a 22 per cent rise in its third-quarter net profit on the back of higher refinery margins and inventory gains.
The state-owned oil retailer's net profit for the reporting quarter stood at Rs 1,950 crore compared with Rs 1,590 crore in the year-ago period.
"The increase in profit is because of a better refinery margin during the period on account of improved cracks and inventory gains," HPCL chairman and managing director Mukesh K Surana told reporters on Friday.
HPCL, which operates two refineries in Mumbai and Visakhapatnam in Andhra Pradesh, earned $9.04 on turning every barrel of crude oil into fuel in the third quarter compared with $6.38 per barrel gross refining margin in the year-ago period.
Surana said the company made an inventory gain of Rs 1,477 crore. Inventory gain arises when a company buys crude oil at a particular price but by the time it is able to transport it and turn it into fuel, petroleum product prices have moved up. Since retail prices are liked to international product prices, the company makes an inventory gain. In case of reverse, the company makes an inventory loss.
HPCL's turnover rose to Rs 62,832 crore from Rs 55,471 crore in the previous year.
The two refineries of the company processed 4.52 million tonnes of crude during the October-December quarter against 4.66 million tonnes a year ago.
Domestic sales of petroleum products rose 3.4 per cent to 26.80 million tonnes with petrol showing a 7.1 per cent growth, diesel 2.3 per cent and LPG 9.2 per cent.