The Hindu Business Line : HPCL posts Rs 407-cr Q3 net

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New Delhi Jan 31 Hindustan Petroleum Corporation Ltd has posted a net profit during the third quarter of current fiscal (December 31, 2006) compared to a loss during the same quarter last year. The company has reported a net profit of Rs 407.31 crore for the quarter as against a loss of Rs 1,077.75 crore during the corresponding quarter last year.

The profit resulted after the company factored in the bonds it will receive from the Government as compensation for selling liquefied petroleum gas (LPG) below cost price. HPCL's net sales for the third quarter shored up to Rs 22,150.20 crore (Rs 18,231.19 crore). The company's total expenditure for the quarter, which included consumption of raw materials and purchase of products for resale among others, rose to Rs 21,956.20 crore (Rs 19,094.88 crore).

For the nine-month period of the current fiscal the company's net profit stood at Rs 1,021.63 crore as against the net loss of Rs 1,607.78 crore reported during the same period last year. HPCL has reported net sales of Rs 67,191.76 crore for the nine-month period (Rs 50,127.99 crore). According to the company, the financial results for the current nine months have been affected due to high crude and product prices, which could not be fully passed on to the consumers.

The prices of domestic LPG and kerosene sold under the public distribution system are subsidised. Subsidy amounting to Rs 398.93 crore for the current nine-month period has been accounted at one-third the subsidy rate for 2002-03, the company said. The under-recovery on petrol, diesel, kerosene and LPG during April-December 2006 was partially compensated by way of discounts from upstream companies (for purchase of crude oil, LPG and kerosene) amounting to Rs 3,017.82 crore and oil bonds from the Government amounting to Rs 3,932 crore. For the third quarter of this fiscal the company has accounted for oil bonds worth Rs 1,026 crore (in the second quarter the company received oil bonds worth Rs 2,906 crore).

The gross refining margins during the nine-month period ended December 2006 were $4.86 per barrel ($2.54 per barrel) for Mumbai refinery and $3.35 per barrel ($2.68 a barrel) for Visakhapatnam refinery. HPCL stock opened at Rs 310.85 on BSE on Wednesday, touching an intra-day high of Rs 316 and closing at Rs 311.70.

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