HPCL posts 35% rise in Q3 profit at ₹40.7 billion on lower crude prices

Indian state-run refiner Hindustan Petroleum (HPCL) reported a jump in third-quarter profit on Wednesday, ‍supported by higher ​refining margins as crude prices dropped.

The Mumbai-based firm's standalone net profit rose 34.7 per cent to 40.72 billion rupees ($444.5 million) in the three months ended December 31. HPCL's quarterly gross refining margin - the profit from making refined products from ​one barrel of oil - improved to $8.85 per barrel from $6.01 reported a year ago.

KEY CONTEXT

Global Brent crude oil prices - used by refiners as a raw material - dropped more than 9 per cent in the October-December quarter, pushing up margins.

 

Additionally, fuel consumption in India, the world's third-largest consumer and importer of oil, also hit a record high in December following a six-month peak in November.

Consumption rose 5.5 per cent and 5.3 per cent year-on-year in ??November and December, respectively, after a 0.4 per cent drop in ‌October, according to data from the ​Petroleum Planning and Analysis Cell (PPAC).