State-run Hindustan Petroleum Corporation (HPCL) has posted a 147.5 per cent increase in its net profit for the second quarter of the financial year to Rs 1,735 crore, on the back of higher crude throughput and inventory gains.
This was compared to Rs 701 crore during the same period in 2016-17. "One of the major reasons for a higher net profit was due to higher inventory gains of Rs 792 crore during the second quarter, compared to Rs 550 crore inventory loss during the same period in 2016-17. We also had higher throughput, better refinery margin and higher domestic market sales during the quarter, " said M K Surana, chairman and managing director of HPCL.
Meanwhile, for the July to September quarter, the company has posted its highest ever net sales of Rs 54,153 crore as against Rs 47,750 crore during the same quarter in 2016. During the quarter, domestic sales of petroleum products increased to 8.37 million tonne (MT), registering a growth of 4.6 per cent over the corresponding quarter of the previous year.
The refineries at Mumbai and Visakh processed 4.64 MT of crude during July to September this year, compared to 4.05 MT last year. The combined gross refining margin (GRM) during the period was seen at $7.61 per barrel compared to $3. 23 a barrel during the corresponding previous period primarily due to improved distillate yield and better product cracks.
Meanwhile, the company has won an arbitration award of Rs 444 crore with Malaysia's M3nergy Berhad. The state-run company had initiated an international arbitration proceeding against the Malaysian major in 2009 over termination of a contract for development of an offshore field in Mumbai.
"We will be getting an interest of 9 per cent over and above Rs 444 crore, starting from 2009, " Surana added.