NEW DELHI: State-run oil major Hindustan Petroleum Corporation Ltd., (HPCL) has posted an 87.2 per cent drop in net profit during the quarter ended December 31 compared to the same period last year. The decline in earnings was primarily due to a Rs 3,465 crore inventory loss arising from falling crude oil prices, combined with falling refinery margins.
The company had posted a net profit of Rs 1,950 crore in the corresponding period a year ago. “The decrease in profit is mainly due to inventory losses caused by falling crude oil prices and higher fuel and loss component,” said HPCL chairman and managing director Mukesh K Surana.
While inventory losses were high, compared to an inventory gain of Rs 1,477 crore a year ago, refining margins too contracted during the quarter. HPCL earned $3.72 from converting each barrel of crude oil into fuel compared with a gross refining margin (GRM) of $9.04 per barrel a year ago. In terms of value, total sales grew to Rs 76,884 crore, from Rs 62,832 crore in the same period of last year.
In terms of volume, sales increased to 9.4 million tonne, up 2.5 per cent year-on-year, with petrol sales volumes rising 6 per cent and diesel 0.4 per cent. And while LPG sales growth was flat, jet fuel sales rose 27.4 per cent, said Surana. The board has declared an interim dividend of Rs 6.50 per share.