Hindustan Petroleum's net profit dips 56 per cent

The state-owned company announced its Q1 net profits on Friday.

State-owned petroleum giant, Hindustan Petroleum Corporation Limited reported a drop of 56 per cent in its Q1 net profit. The June quarter's loss was on account of inventory losses and lower refining margins.

"We had an inventory loss of Rs 1,595 crore in first quarter of current fiscal as compared to an inventory gain of Rs 1,935 crore in the corresponding period of the previous fiscal," said, M K Surana, Chairman and Managing Director, HPCL.

The company reported earning of USD 5.86 on turning every barrel of crude oil into fuel during April-June, 2017-18. During that quarter, the net profit of the company Rs 925 crore which was lower than Rs 2,098 crore the previous year.

A company incurs Inventory loss when the oil prices fall after procurement but before marketing. An inventory gain, in contrast, occurs when prices rise after procurement and before marketing. HPCL said that revenue rose to Rs 59,891 crore from Rs 51,600 crore in the first quarter of the previous year.

"HPCL's Mumbai and Visakh refineries processed 4.49 million tons of crude oil in the quarter, almost unchanged from the previous year. Both the refineries are supplying 100 per cent of BS-IV grade petrol and diesel with effect from April 1, 2017," he added.

83 petrol pumps were commissioned during Q1 taking the total retail outlet network to 14,495. Electronic data capture (EDC) services and mobile wallets for digital transactions is now available at more than 96 per cent of the total retail fuel stations as of June. For the year 2017-18, HPCL plans to invest about Rs 7,100 crore.

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