HPCL posts loss of Rs 321 cr for July-Sept quarter

Gross refining margin stands at $2.74 per barrel

State-run Hindustan Petroleum Corporation Limited has posted a loss of Rs 320.5 crore for July-September quarter against profit of Rs 1,588 crore in preceding quarter due to inventory losses.

Gross refining margin for the quarter stood at $2.74 per barrel. Average gross refining margin during six months period ended September 2015 stood at $5.45 a barrel against $2.09.

"During the quarter July – September 2015, the declining Crude and Product prices severely impacted our financials on account of inventory losses resulting in the Corporation reporting a loss of Rs 320 crores," said HPCL in a press statement. 

Revenue declined 18.6% year-on-year sequentially to Rs 42,072 crore in quarter ended September 2015. Loss at operating level stood at Rs 58 core for the quarter against operating profit of Rs 3063 crore in June quarter and profit of Rs 1600 crore in a year-ago period.

HPCL Mumbai Refinery expansion project has been approved to augment the capacity from 6.5 Million tonnes to 9.5 Million tonnes at an estimated capital cost of Rs.4,200 crores. This project shall enable HPCL to meet the BS IV/V fuel specification as per the Auto Fuel Policy of Government of India. 

The Crude Cavern at Visakhapatnam under joint ownership with ISPRL has been commissioned which has led to augmentation of our crude storage capacity by 330 TMT at a capital cost of about Rs. 280 crores.

The stock closed at Rs 793.85, up, 0.77% on the Bombay Stock Exchange.