HPCL Q1 net at Rs 648 crore

Hindustan Petroleum Corporation Limited has registered a turnover of Rs. 25,819 crores for the period April – June, 2009 as against  Rs. 31,204 crores in the corresponding previous period largely due to the decline in the international prices of crude oil and products. The sales of petroleum products (including exports) have increased to 6.84 million tonnes registering a growth of above 11% over the first quarter of previous year.  The growth in domestic sales was 7.6% as against the industry average of 6.2%, being the highest growth among oil marketing PSUs.

The refineries at Mumbai and Visakh processed 4.10 million tonnes of crude during April – June, 2009 as against 3.36 million tonnes during April – June, 2008. The combined GRM recorded for the period was US $ 5.71 /bbl.

On the financial front, the Profit after Tax for the period April-June, 2009 was Rs.649 crores as against a loss of Rs 888 crores for April-June, 2008. The interest cost for the period was lower at Rs 270 crores, as compared to Rs 406 crores during the same period of previous year. The decrease in interest cost was due to lower levels of borrowings as also lower rates of interest. The net under recovery on sale of sensitive petroleum products during the first quarter also came down to Rs 990 crores from Rs 2,758 crores during corresponding previous period. During the quarter, the foreign exchange gain was Rs 161 crores as against loss of Rs 224 crores in the previous year.

The facilities for Euro III petrol production at Mumbai Refinery have been commissioned in July and at Visakh Refinery it is expected in August, 2009.

The new JV Refinery at Bathinda, viz HPCL – Mittal Energy Ltd. (HMEL) is progressing as per schedule. Ordering for plant and equipment have mostly been completed and the physical progress of the 1008 Km pipeline and 9 MMTPA Refinery is over 35%. The mechanical completion is expected in February 2011 is as per schedule.