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Hindustan Petroleum Corp’s Q2 net declines 37%

Date: 02-11-2018
Subject: Hindustan Petroleum Corp’s Q2 net declines 37%
State-run Hindustan Petroleum Corp’s (HPCL) net profit for the second quarter of FY19 fell 37% to Rs 1,092 crore compared with Rs 1,735 crore in the year-ago period mainly on the back of a rise in crude oil prices and exchange rate fluctuations.
The foreign exchange loss for the period under review was Rs 887 crore compared with Rs 20 crore gain compared with the second quarter of FY18.
The oil marketing company registered a rise of 35% in gross sales to Rs 73,065 crore in the quarter under review compared with `54,143 crore during July-September quarter in 2017. This is owing to a sharp rise in average crude oil prices from $52.7 a barrel during the same time last year to $72.46 a barrel this year. The combined gross refining margin for the second quarter of FY19 stood at $4.81 a barrel compared with $7.61 a barrel in the corresponding period last financial year.
The company saw an inventory gain of Rs 1,276 crore in the second quarter of FY19 compared with Rs 792 crore during the corresponding period last year.
The domestic sales of petroleum products was 8.83 million tonne (MT), a growth of 4.8% in the quarter ended September 2018 over the comparable period a year ago. While sales of petrol increased by 5.9% and that of diesel by 2.4%, aviation turbine fuel sales shot up 27.3%.
Talking about the merger of HPCL and MRPL, HPCL’s chairman and managing director MK Surana said it will happen only in the next financial year.

While there is some progress in talks, it will take at least months for the process to finalise. “The three boards (including parent ONGC) will be taking up the plan soon,” he said.
The refiner has also decided to take short shutdowns in all its refineries to upgrade to BS VI fuel norms next year.
Despite retail fuel prices softening in the last fortnight, the company continues to absorb `1 per litre of petrol and diesel sold since October 5 when the government announced measures to tackle skyrocketing fuel prices. The financial impact of the move will be visible during the third quarter, said Surana.
Separately, to expand its non-fuel portfolio, HPCL has entered into packaged drinking water business and has launched a brand Reminero in Hyderabad which is sold at its retail outlets. It has already sold 20,000 bottles at a maximum retail price of `20 per bottle. HPCL is looking to expand this to other markets as well.

Source: economictimes.indiatimes.com