HPCL Q2 profit dives 37%

Our Bureau New Delhi | Updated on November 01, 2018 Published on November 01, 2018

Hindustan Petroleum Corporation Ltd (HPCL) on Thursday reported a ₹1,091.98-crore net profit for Q2 FY19, 37 per cent lower than the ₹1,734.74-crore Q2 FY18 profit.

The company saw a combined gross refinery margin of $4.81 ($7.61) a barrel during the period. GRM is an estimate of the gain per barrel of crude oil processed during the quarter under consideration.

An HPCL statement said: “GRM has been impacted mainly on account of an increase in crude price resulting in higher fuel and loss component and lower cracks for some of the products like LPG, bitumen, lubes, furnace oil and exchange rate fluctuations.”

HPCL’s CMD MK Surana said there had been a forex loss of ₹889 crore in the second quarter of FY19, against a forex gain of ₹20 crore in the previous year quarter.

The increase in global crude oil price aided HPCL’s profits through inventory gains. “The inventory gains during the quarter under consideration stood at ₹1,276 crore. There was a gain of ₹ 726 crore in the same quarter of FY18,” Surana said.

He also said the process of merging Mangalore Refinery and Petrochemicals MRPL (MRPL) with HPCL is going to begin soon. Talks for the same had gained momentum after fellow public sector undertaking ONGC acquired the government’s shareholding in HPCL.

Published on November 01, 2018
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