HPCL Q3 Net Profit up by 23% at Rs 1950 cr

by Shrutee K/DNS

Hindustan Petroleum Corporation Ltd. has registered gross sales of Rs. 62,832 crores during October-December, 2017 as compared to Rs. 55,471 crores for the period October-December, 2016. Quarterly Profit after Tax (PAT) increased to Rs 1950 crores for the period October-December 2017 against Rs 1590 crores achieved during the corresponding period of previous financial year. The increase in profit is due to better refinery margin during the period compared to corresponding period of last year on account of improved cracks & inventory gains.

The refineries at Mumbai and Visakh processed 4.52 million tonnes of crude during October– December, 2017 as against 4.66 million tonnes during October– December, 2016. The combined GRM during the period October– December, 2017 was $ 9.04 per barrel as compared to $ 6.38 per barrel in the corresponding previous period primarily due to improved distillate yield and better product cracks.

For the period April - December 2017, Hindustan Petroleum Corporation Limited has recorded Profit After Tax of Rs4609crores. Gross sales increased by 14.2% to Rs. 1,76,876crores during April-December, 2017 as compared to Rs. 1,54,821 crores for corresponding period of the previous year.

The refineries at Mumbai and Visakh processed highest ever throughput of 13.65 million tonnes of crude during April-December, 2017 as against 13.18 million tonnes during April–December, 2016 registering a crude throughput growth of 3.6%. The combined GRM during the period April-December 2017 increased to $ 7.51 per barrel as compared to $ 5.57 per barrel in the corresponding previous period primarily due to improvement in distillate yield and product cracks. Pipeline Throughput increased to 14.87 million tonnes during April-December, 2017 as compared to 13.24 million tonnes for April-December 2016.

HPCL in its Board meeting held on 9th February 2018 declared an Interim dividend of Rs. 14.50per share resulting in a total payout of Rs 2,659 crores including dividend distribution tax. During April-December 2017, the domestic sales of petroleum products have increased to 26.80 million tonnes with a growth of 3.4% over historical. The sales of Motor Spirit (Petrol) increased by 7.1%, Diesel (HSD) by 2.9%, LPG by 9.2% and Aviation turbine fuel by 7.7% over the corresponding period of previous financial year.

During October-December 2017, the domestic sales of petroleum products increased to 9.23 million tonnes registering a growth of 2.3% over the corresponding quarter of previous year. The sales of Motor Spirit(Petrol) increased by 5.1%, HSD by 2.0%, LPG by 6.7% and Lubes (including base oils) by 11.8%, over the corresponding period of previous financial year.

HPCL continues to be No.1 Lube Marketer of India and also the market leader in bulk LPG Sales with ~49% market share as of December 2017. A total of 371 new retail outlets were commissioned during April – December, 2017 taking the total retail outlet network to 14,783 as of December 2017. Digital Payment Services have been made available at over 96% of HPCL’s Retail Outlet Network as of December 2017.

To improve the efficiency and safety in LPG transportation, first company owned LPG rake was rolled out under Liberalized Wagon Investment Scheme (LWIS) scheme of Ministry of Railways. To enhance space saving, safety and ease of handling in bulk LPG, an innovative failsafe mechanism was developed and implemented to handle Sumo cylinders (425 kg LPG cylinder).

HPCL is strengthening the global footprints in lubricant business by setting up a subsidiary in Dubai for Lube marketing in Middle East and East African countries. In addition, Lube marketing activities have been commenced in Myanmar. To expand product reach to remote geographies, HPCL has commissioned a POL storage and handling facility at Indian Army’s Field Petroleum Depot (FPD) in Leh with storage of over 8800 KL of MS/HSD/ SKO and special grade fuels. The facility is the single largest tankage addition for the Indian Army and is also one of the highest Petroleum storage and loading facilities in the world.Aviation fuel infrastructure was strengthened with commissioning of Aviation Service Facilities at Vidyanagar & Jalgaon airports under Regional Connectivity Scheme.

On 16th January, 2018, Hon’ble Prime Minister in a function held at Barmer, Rajasthan declared Work Commencement of Rajasthan Refinery & petrochemical Project of HPCL Rajasthan Refinery Limited.

HPCL is actively implementing the Pradhan Mantri Ujjwala Yojana (PMUY) for empowering millions of poor women and creating a smokeless & healthy cooking environment in country. During April –December 2017, HPCL has released over 63 Lakh new domestic LPG connections including over 35 lakh PMUY connections. The Project activities for Visakh Refinery Modernization Project and Mumbai Refinery expansion Project are on track. Process Licensor selection and Basic design engineering package have been completed and major contracts have been awarded for both the projects.

HPCL’s large scale pipeline expansion projects - (1) Mundra Delhi Pipeline (MDPL) Capacity Expansion, (2) Extension line from Palanpur to Vadodara (PVPL) Project including Green field Terminal at Vadodara, (3) Visakh-Vijayawada-Secunderabad Pipeline (VVSPL) Capacity Expansion and OSTT-SS Jetty Sub-Sea Pipeline Project and (4) Capacity Expansion of Ramanmandi Bahadurgarh Pipeline (RBPL), are on track. In addition, HPCL board has approved Extension of Visakh-Vijayawada-Secunderabad Pipeline (VVSPL) from Vijayawada to Dharmapuri and construction of marketing terminal at Dharmapuri with a total project cost of Rs 2677 Crores.

HPCL R&D has developed a cost effective lubricity additive HP-DLA for enhancing the lubricity property of Diesel and rolled out at Visakh refinery.

HPCL continues to be a Fortune Global 500 company with ranking of 384 and Platts Top 250 Global Energy Company with ranking of 48. For leadership and excellence across all spheres of business activities, HPCL was recognized with various prestigious awards includingrecognition amongst the ‘2017 Top 100 Global Energy Leaders’ by Thomson Reuters, ‘Forecourt Retailer of the Year’ award, ‘Best Indigenous Technology’ award from MoP&NG, Awards for ‘Excellence in Corporate Communication’ by SCOPE and ‘Golden Peacock Award for Sustainability’ 2017.