Q4 net puts HPCL on slippery track

The company said that the government gave Rs 5,563 crore support, while upstream company ONGC and gas distributor Gail India gave discounts worth Rs 3,247 crore on crude oil, kerosene oil and LPG bought from them. HPCL absorbed a revenue loss or under-recovery of Rs 1,225 crore on sales of sensitive petroleum products during the year, the company said.

Gross sales in 2009-10 stood at Rs 108,598 crore, showing a decline of 6.7% from the previous year, the company said. Interest cost sharply declined to Rs 904 crore, lower by Rs 1,179 crore from the earlier year. During the year, the facilities for Euro III and Euro IV petrol production at Mumbai refinery and at Visakh refinery have been commissioned.

The company showed an 85% dip in its net profit in the quarter ended March 31, 2010, as it was not fully compensated for selling fuel below cost. Net profit declined to Rs 757.53 crore in the January-March quarter of the 2009-10 fiscal from Rs 5,104.04 crore.

HPCL CMD Arun Balakrishnan told reporters in the capital that the company was planning to invest Rs 30,000 crore to set up a 15-16 million tonnes-a-year refinery on the west coast. The proposed refinery, could be in Raigad district of Maharashtra. ?We have been shown three pieces of land by Maharashtra government. We should be able to finalize the location soon,? Balakrishnan said.

During the year under review, the company achieved several performance milestones, HPCL stated. The 9 MMTPA joint venture refinery at Bathinda, being set up by HPCL ? Mittal Energy Ltd. (HMEL) has achieved over 80% overall progress, about 2% ahead of schedule. A Rs 600 crores, 250 Km product pipeline from Bathinda Refinery to Delhi, being constructed by HPCL, is nearing completion, the company informed.

At Mumbai, the Lube Refinery is being upgraded at a cost of Rs 1,000 crores, while construction of five major oil installations has been initiated.