HPCL PAT declines 43 per cent in Q3 FY22

State-run Hindustan Petroleum Corporation (HPCL) on Monday reported a 43 per cent decline YoY in its consolidated net profit at ₹1,353 crore for the quarter ended December 31, 2021, which can largely be attributed to inventory losses due to price fluctuations during the third quarter this fiscal. However, the oil refiner’s consolidated revenue grew 33 per cent YoY to touch ₹1,03,967 crore in the December quarter of FY22, a first for the company. On an annual basis, the company’s total expenses rose by 37 per cent YoY ₹Rs 1,02,915 crore during the same period, HPCL said in a regulatory filing on stock exchanges. “With recovery gaining traction, October-December 2021 quarter saw petroleum product consumption in India echoing the pre-Covid levels. The already volatile crude oil market witnessed sharp price fluctuations with the crude prices continuing to trade at 7-year high levels at end of January 2022 due to concerns oversupply and ongoing geopolitical tensions,” HPCL said in a statement. During the December quarter in FY22, HPCL commissioned and stabilised all the units under the Mumbai refinery expansion project. The refinery is now operating at its enhanced design capacity of 9.5 MTPA (million tonnes per annum). The project will also ensure enhanced energy efficiency, reduced carbon intensity, and improved distillate yield in the refinery operations. Market sales during October–December 2021 (including exports) were 10.54 million tonnes (MT) compared to 10.40 MT for the same period of the previous financial year. HPCL refineries processed 4.24 MT of crude in Q3 FY22 compared to 4 MT during the corresponding period of the previous financial year. Gross Refinery Margin is $6.39 per bbl for October–December 2021 against $1.87 per bbl for the same period in the previous year. During the December quarter of FY22, HPCL commissioned 386 new retail outlets taking the total number of retail outlet networks to 19,602 as of December 2021. Towards meeting the growing demand of LPG in the country, HPCL has strengthened its LPG supply infrastructure with the commissioning of 3 new LPG bottling plants at Rayagada in Orissa, Goalpara in Assam, and Gonda in Uttar Pradesh and augmented facilities at various other LPG plants, it added. The construction of 80,000 tonnes LPG Cavern at Mangalore, which is in progress, will further help in optimisation of cost., the company noted. To ensure the availability of alternate fuels and offer more choices to customers, CNG dispensing facilities were commissioned at 91 retail outlets during October-December 2021, taking the total number of retail outlets with CNG facilities to 900. The EV charging facility has been provided at 655 outlets as of December 2021 and the company plans to extend it to 5,000 retail outlets in the next 3-4 years.