HPCL, one of India’s leading oil and gas companies, has reported a decrease in net profit due to the rise in crude oil prices. The company’s net profit for the April-June quarter fell by 14 percent, standing at Rs 6,765.50 crore.
However, on a positive note, HPCL has achieved its highest ever half-yearly consolidated net profit of Rs 12,592 crore during the period of April-September 2023. This is a significant improvement compared to the consolidated net loss of Rs 11,033 crore during the same period last year.
Not only did HPCL witness a boost in consolidated net profit, but its standalone net profit also reached a record high. The standalone net profit for April-September 2023 was Rs 11,322 crore, while it had experienced a standalone net loss of Rs 12,369 crore in the corresponding period the previous year.
In addition, the company’s performance in the July-September 2023 quarter was remarkable. HPCL recorded a standalone net profit of Rs 5,118 crore, in contrast to a net loss of Rs 2,172 crore during the same period in the previous year.
A contributing factor to these positive results is the average gross refining margins (GRMs) for the periods in question. The average GRMs (gross of export duty) for July-September 2023 were $13.33 per barrel, a significant increase from $8.41 per barrel in the corresponding period last year. Similarly, the average GRMs for April-September 2023 were $10.49 per barrel, compared to $12.62 per barrel in the previous year’s corresponding period.
Moreover, HPCL’s refineries have recorded their highest ever quarterly crude throughput during July-September 2023. They processed a total of 5.75 million metric tonnes (MMT) of crude, marking a growth of 28 percent compared to the 4.49 MMT processed during the same period last year. This remarkable performance can be attributed to the Visakhapatnam Refinery, which operated at an enhanced capacity of 11 MMTPA and processed 3.23 MMT of crude, as well as the Mumbai Refinery, which processed 2.52 MMT of crude, operating at 105.7 percent capacity.
Overall, HPCL’s latest financial results demonstrate its ability to thrive amidst challenging market conditions. With its impressive net profit figures and strong refinery performance, the company is poised for continued success in the oil and gas industry.
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