New Delhi: In the first quarter of financial year 2019-20, state-run Hindustan Petroleum Corporation Limited's (HPCL) recorded a 52.8 percent drop in net profit year-on-year at Rs 811 crore as opposed to Rs 1,719 crore in the corresponding quarter of the previous financial year. "The decrease in profit is due to a sharp decline in crude prices in the month of May and June 2019 leading to inventory losses both at refinery and marketing and also lower average cracks for all products except for LPG and fuel oil. Further, reduced thruput at refineries due to a planned shutdown has also impacted profits," an official statement said.
In the last quarter of the previous financial year, HPCL had reported a 70 percent jump in its net profit at Rs 2,970 crore.
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However, in the June quarter, HPCL also reduced its total borrowings to Rs 20,427 crore as compared to Rs 27,240 crore in the March quarter of the previous fiscal year.
Gross sales for the June quarter of FY2019-20 was at Rs 74,530 crores as compared to Rs 72,923 crores during the corresponding period a year ago. During April-June 2019, HPCL achieved a domestic sales volume of 9.82 MMT with a growth of 1.7 percent. The sales of motor spirit (petrol) increased by 8.4 percent, high-speed diesel by 1.7 percent, value-added lubes by 11 percent and bitumen by 13 percent as compared to Q1 of 2018-19.
The refineries at Mumbai and Visakh processed 3.92 Million Metric Tonnes (MMT) of crude during April-June, 2019 as against 4.52 MMT during April-June, 2018. Lower thruput at refineries was mainly due to planned shutdown at two units in Mumbai in April. The combined GRM during the quarter is $0.75/bbl as compared to $ 7.15 /bbl during the corresponding previous period.
However, after adjusting the inventory gains/losses in both quarters, the core GRM during the current quarter is $3.30/bbl as compared to $3.27/bbl during the corresponding previous period.
While remarking that the state-run refiner is not planning any more shutdowns in Mumbai in this financial year, HPCL CMD MK Surana said, "The company is expecting better GRM in this quarter with stable crude oil prices." He added that the price outlook for crude oil for the September quarter is $60-65 per barrel.
HPCL enhanced the Infrastructure capabilities during the quarter by commissioning of the capacity expansion of RamanmandiBahadurgarh Pipeline (RBPL)from 4.71 to 7.11 MMTPAand commencement of LPG bottling operations at the newly built60 TMTPA LPG plant at Karimnagar (Telangana).
During the quarter, a total of 31 new retail outlets were commissioned taking the total retail outlet network to 15,471 as of June 2019. HPCL is currently exporting lubes to 11 countries. In order to enhance the overseas footprint further, HPCL has signed a definitive agreement with the State Trade Corporation of Bhutan Limited (STCBL) for supply of motor fuels viz., MS, HSD in Bhutan and also for providing the expertise of HPCL in the design, construction, commissioning and operation of retail outlets.