HPCL posts net profit of Rs46 crore, refining margin slids1 min read . Updated: 11 Aug 2014, 08:22 PM IST
The company clocked poor gross refining margins for the quarter at $2.04 per barrel as against $2.58 per barrel a year earlier
Mumbai: India’s third biggest oil marketer Hindustan Petroleum Corp. Ltd. (HPCL) on Monday posted a net profit of Rs46 crore for the June quarter as against a loss of Rs1,460 crore for the same period last year. In a statement to stock exchanges, the company attributed the surprise profit to growth in domestic sales, lower interest costs and gains from exchange rate variation.
A Bloomberg poll of 23 analysts had estimated the company’s net sales at Rs58,729.50 crore and a net loss of Rs428.30 crore for the June quarter.
However, HPCL clocked poor gross refining margins (GRM) for the quarter at $2.04 per barrel as against $2.58 per barrel in the year-ago period. GRM is the difference between the price at which a refiner bought crude and that at which it sells refined products distilled from it.
The company’s gross sales of Rs61,183 crore for the first quarter were 18.66% higher than the Rs53,243 crore in the year-ago period.
The shares of the company closed at Rs408.95, up 2.78% on Monday’s close against the benchmark 30-share BSE index Sensex which closed at 25,519.24, up 0.75%.
HPCL said domestic sales of petroleum products had increased to 8.05 million tonnes, an increase of about 3.3% over the year-ago period, as against the industry average growth of 2.6%. The sales of petrol increased by 9.4%, jet fuel by 10.4% and that of high-speed diesel by 0.6%, over the first quarter of previous year.
The company’s refineries in Mumbai and Visakhapatnam processed 3.28 million tonnes of crude during the June quarter as against 3.44 million tonnes a year ago.
The company said during the quarter that the government had extended a budgetary support of Rs2,516.14 crore to make up for its losses due to selling products below cost, and it had received Rs3,608.69 crore from upstream companies Oil and Natural Gas Corp. Ltd. (ONGC) and Gail (India) Ltd.