HPCL Q3 outcomes. (Credits: PTI)
The 21-month report freeze in retail gas costs regardless of fall in enter uncooked materials (crude oil) costs helped elevate advertising and marketing margins
Hindustan Petroleum Corporation Ltd (HPCL) on Thursday reported trebling of revenue within the December quarter as strong advertising and marketing margin negated stock losses. Standalone internet revenue of Rs 529.02 crore, or Rs 3.73 per share, within the December quarter, as in contrast to Rs 172.43 crore, or Rs 1.22 a share, in final yr, the corporate stated in a press release.
The 21-month report freeze in retail gas costs regardless of fall in enter uncooked materials (crude oil) costs helped elevate advertising and marketing margins however refining margins had been decrease and the agency additionally suffered stock losses due to the lag in shopping for and processing oil throughout which period charges fell.
HPCL earned USD 8.49 on turning each barrel of crude oil into gas like petrol and diesel throughout October-December as in contrast to USD 9.14 per barrel gross refining margin final yr.
However, the agency booked Rs 700-750 crore stock loss within the interval beneath overview.
The revenue in October-December — the third quarter of the present fiscal — was decrease than Rs 5,118.16 crore within the previous quarter ended September 30, 2023.
This was “primarily due to suppressed marketing margins on select transport fuels and lower refining margins attributable to lower cracks and falling crude prices during the period”, the assertion stated.
Revenue from operations was virtually flat at Rs 1.18 lakh crore.
In 2022, state-owned gas retailers Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and HPCL froze costs, regardless of a spike in world oil costs following Russia’s invasion of Ukraine. This was with a view to insulate shoppers from value volatility.
The value freeze led to the three corporations incurring losses within the first half of 2022-23 fiscal (April 2022 to March 2023). When costs began to fall final yr, they recouped earlier yr’s losses and the identical continues even now.
The board accredited an interim dividend of 150 per cent (Rs 15) on every fairness share of Rs 10.
“With progressive commissioning of units at Visakhapatnam refinery, HPCL refineries processed highest-ever crude throughput of 16.49 million tonnes during the April-December period (operating at close to 104 per cent of installed capacity) registering an increase of 16.7 per cent over crude throughput of 14.13 million tonnes processed during April-December 2022.
“Despite the turnaround activities at one crude distillation unit (Visakhapatnam refinery), the crude throughput during October-December 2023 was 5.34 million tonnes (operating at 95.4 per cent capacity) with an increase of 10.6 per cent over crude throughput of 4.83 million tonnes processed during October-December 2022,” it stated.
On the advertising and marketing entrance, HPCL achieved its highest-ever quarterly gross sales quantity (together with exports) of 11.90 million tonnes throughout October-December 2023 (11.25 million tonnes throughout corresponding interval of earlier yr) representing a development of 5.8 per cent.
The complete gross sales quantity (together with exports) throughout April-December 2023 at 34.49 million tonnes was additionally the best-ever 9-month gross sales quantity with development of 6.6 per cent.
“In the domestic market, HPCL continued to outpace PSU industry sales growth, registering quarterly sales growth of 3.2 per cent during October-December 2023 as compared to PSU industry growth of 2.8 per cent during this period,” it stated.
HPCL additionally registered market share acquire/above trade development in key merchandise — 0.20 per cent — throughout October-December.
“To strengthen refining and marketing infrastructure HPCL has invested Rs 10,350 crore during April-December 2023 (including equity investment in its JVCs and subsidiaries),” it stated.
HPCL stated it has acquired regulatory approvals for establishing a completely owned subsidiary for its renewable and inexperienced vitality portfolio and has integrated HPCL Renewables & Green Energy Ltd.
HPCL has bold plans to enhance its renewables portfolio to 10 GW by 2030 and bio-fuels portfolio via new 1G, 2G, and CBG crops.
(This story has not been edited by News18 workers and is printed from a syndicated information company feed – PTI)
