HPCL returns to black with Rs 5,827 cr profit after marketing margin boost

State-owned Hindustan Petroleum Company Ltd (HPCL) on Monday reported returning to profitability within the September quarter after a lift in advertising margin improved earnings.

It logged a consolidated internet revenue of Rs 5,826.96 crore in July-September 2023-24. Within the year-ago interval, the corporate had a lack of Rs 2,475.69 crore, it stated in a inventory alternate submitting.

The revenue was aided by a lift in advertising margins as a freeze on petrol and diesel value revision regardless of a fall in enter crude oil costs helped get better losses incurred when charges had been excessive final 12 months.

Pre-tax earnings from the downstream oil refining and advertising enterprise got here at Rs 6,984.60 crore within the second quarter of the present fiscal. Within the year-ago interval there was a lack of Rs 2,462.57 crore.

Final 12 months, state-owned gas retailers HPCL, Indian Oil Company (IOC) and Bharat Petroleum Company Ltd (BPCL) froze costs regardless of a spike in world oil costs following Russia’s invasion of Ukraine. This was with a view to insulating customers from value volatility.

The value freeze led to the three corporations incurring losses within the first half of 2022-23 fiscal 12 months (April 2022 to March 2023). HPCL incurred a lack of Rs 15,118.41 crore in April-September 2022. This 12 months, it nevertheless posted report earnings of Rs 16,389.55 crore in April-September.

Revenues fell to Rs 1.02 lakh crore in July-September from Rs 1.13 lakh crore final 12 months on decrease oil costs.

HPCL stated it earned $ 10.49 on turning each barrel of crude oil into gas in April-September 2023 as in comparison with a gross refining margin of $ 12.62 within the corresponding interval final 12 months.

Within the present quarter, the refinery throughput was 5.75 million tonne versus 4.49 million tonne in Q2 FY22-23. Home gas gross sales rose to 10.08 million tonne in Q2 FY 23-24 from 9.87 million tonne a 12 months again.