HPCL Q1 net up 86% to Rs 1,719 cr

State-run oil marketer and refiner Hindustan Petroleum Corp (HPCL) on Wednesday reported an 86% increase in net profit to Rs 1,719 crore in the April-June 2018 period, from Rs 925 crore in the comparable period a year ago, driven mainly by strong refining margins. The company, now a subsidiary of the national explorer ONGC, reported a revenue of Rs 72,923 crore for the June 2018 quarter, compared with Rs 59,891 crore a year ago. However, the cost of crude oil to the company increased from $49.8 per barrel to $73 per barrel between the two periods.

MK Surana, chairman and managing director of HPCL, told reporters that the increase in profit was mainly due to higher refining margins and inventory gains. The combined gross refining margin, or earnings from refining each barrel of crude oil, of the company was up to $7.15 per barrel during the June 2018 quarter compared with $5.86 a year ago. The Asian benchmark Singapore gross refining margin averaged around $6 a barrel during the last quarter.

During April-June 2018, HPCL achieved the highest ever quarterly domestic sales volume of 9.63 million tonne (mt), the company said in a release. The sales of petrol increased by 6.9%, diesel by 2.7%, liquefied petroleum gas by 11.3%, aviation turbine fuel by 9.9%, and lubes by 22.9% during the last quarter compared with the year-ago period.

Pipeline throughput increased to 5.45 mt with a growth of 17% over the corresponding previous quarter last year. For 2018-19, HPCL has plans to invest over Rs 8,400 crore in various projects across verticals such as refineries, petrochemicals, marketing, pipelines and natural gas.

Hindustan Petroleum Corporation Ltd.(HPCL)