Mumbai: State-run Hindustan Petroleum Corp. Ltd (HPCL) swung to a profit in the quarter ended September from a loss in the year-ago period thanks to higher sales and lower inventory losses.
HPCL earned a profit of Rs701 crore in the quarter compared with a loss of Rs317 crore in the year-ago quarter.
“The increase in profit is due to higher domestic market sales and reduced inventory loss compared to corresponding period of last year,” the company said in a statement.
The numbers also included budgetary support from the government amounting to Rs691.86 crore towards under-recovery on sale of kerosene, the company said.
During the quarter, sales increased 3% to Rs47,822.49 crore from Rs46,368.15 crore in the July-September quarter of 2015. “Domestic sales of petroleum products increased to 8.02 million tonnes from 7.78 million tonnes, registering a growth of 3.1% over the corresponding quarter of the previous year,” HPCL said in the statement.
Sales of petrol increased by 9.3%; diesel by 1.1%; liquefied petroleum gas by 14.6%; aviation turbine fuel by 11.3%; and lubes by 16.6% from the year-ago quarter.
Combined gross refining margin or realization from turning every barrel of crude oil into finished products for HPCL’s Mumbai and Visakhapatnam refineries came in at $3.23 per barrel against $2.74 per barrel a year ago.