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State-run Hindustan Petroleum Corporation (HPCL) on Thursday reported a consolidated net profit of ₹444.26 crore in the October-December quarter of the current fiscal as the gradual softening of international crude oil prices helped partially restore marketing margins on auto fuels.
However, the oil marketing company’s (OMC’s) consolidated net profit was down 67 per cent y-o-y. During Q2 FY23, the company had posted a net loss of ₹2,476 crore.
HPCL’s consolidated total income rose to ₹1.17-lakh crore in Q3 FY23 compared to ₹1.15-lakh crore in Q2 FY23 and ₹1.04 lakh crore in Q3 FY23.
The gradual softening in international oil prices helped in partially restoring the marketing margins on transport fuels from unprecedented levels prevalent during April-September 2022. However, marketing margins continued to remain suppressed for select transport fuels, thereby impacting profitability, the company said in a statement.
On a consolidated basis, HPCL reported a net loss of ₹10,589 crore for the April-December period of FY23 compared to a PAT of ₹5,276 crore in the year-ago period.
The government of India had approved a one-time grant of ₹5,617 crore to compensate under-recoveries incurred on sale of domestic LPG during FY22 and current period, which has been duly recognised in the quarter ended September 2022 and nine months ended December 2022.
Other expenses for the period April-December 2022 include ₹1,952 crore towards loss on account of foreign currency transactions and translations (April-December 2021: Gain of around ₹182 crore included in other Income).
Operational metrics
HPCL refineries at Mumbai and Visakhapatnam processed the highest ever quarterly crude throughput of 4.83 million tonnes (MT) during October-December 2022 (4.24 MT crude processed in year-ago period). The throughput in April-December 2022 was 14.13 MT compared to 9.28 MT during April-December 2021.
Average GRMs (Gross of export duty) for October-December 2022 stood at $9.14 per barrel ($6.39 per barrel in year-ago). The average GRMs (Gross of export duty) April-December 2022 were $11.40 per barrel against $4.50 per barrel during the same period of previous year.
In Q3 FY23, HPCL achieved the highest quarterly sales volume of 11.25 mt (10.54 mt Q3 FY22) representing a growth of 6.7 per cent. The company recorded higher than Industry growth in major lines of petrol, diesel, LPG, lubes and furnace oil. The total sales during April-December 2022 was 32.34 mt (28.47 mt Q3 FY22) with growth of 13.6 per cent. HPCL outperformed Industry in all major products, except ATF.
Expansions
The Visakhapatnam Refinery Modernisation Project (VRMP) for enhancing refining capacity from 8.3 MT to 15 MT is in advanced stage of completion with all the utilities required for new units already commissioned. The main units are slated to chronologically commission starting with CDU commissioning in Q4 FY23.
The 5 mt per annum (MTPA) capacity liquefied natural gas (LNG) terminal constructed through HPCL subsidiary, HPCL LNG, is nearing completion. The work on pipeline connectivity by GSPL is underway and is expected to be ready by June 2023 and the terminal shall be commissioned thereafter.
“On the renewable front, construction of compressed biogas plant (CBG) of 14 tonnes per day (TPD) capacity at Badaun (UP) is nearing completion with pre-commissioning activities underway for boiler unit post CEA inspection,” HPCL said.
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