HPCL energises its Q2 net profit by 166% to Rs 850 cr

HPCL energises its Q2 net profit by 166% to Rs 850 cr
Hindustan Petroleum Corp Ltd (HPCL) on Thursday reported a 166 per cent rise in net profit in September quarter on back of subsidy support from the government. Net profit at Rs 850.31 crore, or Rs 25.11 per share, in July-September was 166 per cent higher than Rs 318.92 crore, or Rs 9.42 a share, net profit in the same period a year ago.

HPCL Director (Finance) K V Rao said it bore only Rs 8 crore loss on fuel sales after government gave cash subsidy of Rs 1,403 crore and upstream firms like ONGC doled out Rs 3,751 crore to meet under-recoveries on diesel and cooking fuels.

It earned $2.12 on turning every barrel of crude oil into products in Q2 compared to $3.81 per barrel gross refining margin a year ago. The refining margin was lower on account of inventory loss as global oil prices slumped. Turnover was marginally lower at Rs 51,633.18 crore compared with Rs 51,903.66 crore.

HPCL's refineries processed 4.49 million tonnes of crude oil in July-September, up from 3.89 million tonnes in the same period of previous fiscal. Sales too were higher at 7.36 million tonnes as against 7.20 million tonnes in Q2 2013-14, he said. As part of its massive expansion plan, HPCL may pick up 8 per cent stake in Petronet LNG Ltd’s Rs 5,000 LNG terminal at Gangavaram in Andhra Pradesh.

‘HPCL has evinced interest in taking stake in the terminal as they have a huge requirement of gas at Visakhapatnam refinery,’ a top Petronet official had said. The Viskhapatnam refinery, which
is only a few kilometers away from Gangaravam port, is being expanded to 15 million tonnes per annum from current 8.33 million tonnes and the expanded unit will have a gas requirement of close to 2.5-3 million standard cubic meters per day.                           


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