Hindustan Petroleum Corporation Ltd (HPCL) reported on Friday that its net loss for the quarter ended June 30 has increased to Rs 3,080 crore as against Rs 1,884 crore in the corresponding quarter last year.

“The loss during the quarter is primarily on account of absorption of under-recoveries on sale of sensitive petroleum products amounting to Rs 3,060 crore during the quarter.

“The interest cost for the period was also higher at Rs 264 crore as compared to Rs 197 crore during the same period last year, mainly due to higher level of borrowings,” said the company in a statement.

Turnover rises

HPCL's turnover increased by 28 per cent to Rs 40,438 crore as against Rs 31,645 crore in the corresponding quarter last year.

Domestic sales of petroleum products increased to 6.95 million tonnes, a growth of over 6.2 per cent.

Commenting on paying its dues to Iran for oil imports, HPCL's Director (Finance), Mr B. Mukherjee, said that the company has begun paying its dues and hopes to clear its debts of $1.01 billion by the next month.

Dues to Iran

“The company has so far paid $150 million and we hope to pay another $45 million by August 16,” he said.

The company, which sources 3.35 million tonnes of its total 11 million tonnes crude imports from Iran, hopes to get crude from Iran in September.

HPCL did not get any cargo from Iran in August.

Bhatinda Refinery

The 9-million-tonne joint venture refinery at Bhatinda being constructed by HPCL – Mittal Energy Ltd (HMEL) is expected to be fully commissioned by the end of this year.

The refinery has received crude and sometime this month one of the units will be operational, he said. The joint venture has sourced its crude from Saudi Arabia and Kuwait for the refinery.

HPCL's scrip closed 1.86 per cent lower at Rs 384.25 on the BSE on Friday.

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