Hindustan Petroleum Corp Ltd (HPCL) on Wednesday reported a 53 per cent drop in June quarter net profit mainly due to inventory losses caused by fall in oil prices and decline in refinery margins.
Net profit slipped to Rs 811 crore in April-June as compared to Rs 1,719 crore a year back, the company's Chairman and Managing Director Mukesh K Surana told reporters here.
"The decrease in profit is due to sharp decline in crude prices in the month of May and June 2019 leading to inventory loses both at refinery and marketing, and also lower average cracks for all products except for LPG and fuel oil," he said.
Also, there was reduced throughput at refineries due to planned shutdown which impacted profits.
HPCL earned USD 0.75 on turning every barrel of crude oil into fuel in Q1 of the current fiscal as compared to USD 7.15 per barrel gross refining margin (GRM) earlier, he said.
Sales increased marginally to Rs 74,530 crore in April-June as against Rs 72,923 crore turnover a year back.
During April-June, HPCL fuel sales grew 1.7 per cent to 9.82 million tonnes. Petrol sales increased 8.4 per cent while diesel sales rose 1.7 per cent.
"The GRM were lower because of shutdown taken at our refineries," he said.
Surana said HPCL suffered an inventory loss of Rs 535 crore in Q1 as compared to an inventory gain of Rs 2,332 crore ?a year back.
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