HPCL net dips 3.66% on falling refinery margins

Company conferred Maharatna status

Hindustan Petroleum Corporation Limited (HPCL) has reported a 3.66% fall in its second quarter net profit to ₹1,052 crore on falling refining margins.

The fall in profit came on the back of a 9.44% drop in sales to ₹66,165 crore, despite the sale of refining products registering a growth of 1.3% to 8.95 million tonnes.

The company’s combined gross refining margins for the quarter fell to $2.83 per barrel compared with $4.81 in the year-ago period.

The company said it was conferred with the ‘Maharatna’ status in October 2019 by the government, and that this would provide greater operational and financial autonomy to the company.

HPCL’s Mumbai and Visakh refineries processed 4.56 million tonnes of crude during the quarter versus 4.76 million tonnes in the year-ago period due to planned shutdown at Visakh refinery in September 2019, the company said in a statement.

The company has commissioned a total of 268 new retail outlets during the quarter, taking the total retail outlet network to 15,739 as of September 2019.

Similarly, a total of 87 new LPG distributorships were commissioned during the quarter, taking the total LPG distributorships to 5,979 as of September 2019.

“HPCL refineries are being upgraded to produce transportation fuels meeting BS VI specifications and HPCL will be ready to roll out BS VI fuel on a pan India basis as per the scheduled date,” said the statement.

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