Public sector oil marketing company Hindustan Petroleum Corporation Limited (HPCL) on Tuesday reported R701 crore net profit during July-September quarter of FY17 against a loss of R317 crore in the corresponding period of the previous financial year.
“The increase in profit is due to higher domestic market sales and reduced inventory loss,” said HPCL chairman and managing director Mukesh K Surana.
The PSU firm reported $3.23/barrel as gross refinning margin (GRM) in the second quarter of FY17 against $2.74 a barrel in the year-ago period.
“Also, inventory loss on marketing operations was down to R359 crore from R1,406 crore in the second quarter of last fiscal. Inventory loss for refineries came down to about $1 per barrel in July-September from $4.75 a year ago,” Surana told media persons.
Gross sales were up marginally at R47,750 crore during second quarter of FY17 against R46,299 crore in the year-earlier period. Domestic sale of petroleum products rose 3.1% to 8.02 million tonnes.
HPCL has issued bonus shares in the ratio of two shares of R10 for one existing of R10 each. 25% stake in West Coast refinery: HPCL is eying a 25% mega oil 60-million tonners per annum refinery planned on the west coast.
“HPCL Board at its meeting today decided to participating in the 60 million tonnes a year refinery in Maharashtra. We intent to putting in 25% equity,” said HPCL chairman and managing director Mukesh K Surana.
“We are open to getting a strategic partner but that will be decided later. For now, we have decided to participate in the project with 25% stake,” the head of HPCL explained.
The mega complex will require 12,000-15,000 acres of land and two-three sites on coast of Maharashtra are being explored. “We have so far not finalised the land. Talks are on,” Surana said.
Rs 6,000 crore via bonds
The refinery and oil marketing company proposed to mop up R6,000 crore via bonds to fund its expansion plans. HPCL board on Tuesday gave its nod to raise the funds from domestic as well as overseas markets.
Surana said that this will be subjected to shareholder approval, which will be done through postal route. “We have our expansion plans in Vizag and Mumbai refineries. This will also be used for development of our marketing and pipeline infrastructure,” he added.