Despite a Rs 1,200 crore inventory loss due to a steep fall in global crude prices, Hindustan Petroleum (HPCL) today swung back into black with a Rs 1,042.26 crore profit for the December quarter.
The company had reported a net loss of Rs 325.38 crore in the year ago period.
During the reporting quarter, sales declined massively to Rs 48,307.78 crore from Rs 53,456.79 crore due to fall in retail prices following the massive decline in crude prices, Chairman and MD Nishi Vasudeva told reporters here.
However, the gross refining margins, the difference between what an oil marketing company earns by refining a barrel of crude and what it pays to procure that, rose to healthy USD 7.86 a barrel as against a negative USD 0.97 a barrel in the year ago quarter, she said, adding that the company booked Rs 1,200 crore in inventory loss.
HPCL Director (Finance) J Ramaswamy said finance cost nearly halved to Rs 161.03 crore during the period from Rs 236.97 crore as the company borrowed lesser amount from the market as its crude procurement cost came down following the fall in prices.
Also, the PSU had almost no under-recoveries as barring kerosene and LPG there is no subsidy on any of its products.
The company said its under-recoveries stood at a paltry Rs 40 crore during the third quarter under review.
Ramaswamy said the average crude volatility was around USD 20 in the quarter vis-a-vis USD 45-46 in the same period last year.
"We feel crude prices, from this level, may not deviate too much down or up. That should be comfortable going forward," Vasudeva said.
On lubes, she said, "HPCL is looking at export opportunities. Nothing has been finalised as of now and we will make the plans in the coming financial year."
On the proposed mega refinery in western Maharashtra, she said a working group has been set up to work out the feasibility and other things, and the State Government has been requested to identify the land.
