HPCL, one of the leading oil and natural gas companies in India, has reported a significant increase in its consolidated net profit for the first half of the fiscal year 2023-2024. The company’s net profit rose to a record high of Rs 12,592 crore during the period of April-September 2023, compared to a consolidated net loss of Rs 11,033 crore in the same period last year.
Furthermore, HPCL’s standalone net profit for the same period also reached an all-time high of Rs 11,322 crore, compared to a standalone net loss of Rs 12,369 crore in the previous year. This remarkable performance can be attributed to various factors, including improved operational efficiency and cost management.
However, despite these impressive financial results, HPCL experienced a decline in its net profit for the July-September 2023 quarter. The net profit during this period amounted to Rs 5,118 crore, showing a significant improvement from the net loss of Rs 2,172 crore in the corresponding period last year.
One of the main factors influencing this decline in net profit during the quarter was the spike in crude oil prices, which resulted in increased production costs. HPCL’s profitability is closely tied to crude oil prices, and any fluctuations in the market can impact its financial performance.
During the July-September 2023 quarter, HPCL’s refineries processed a record-breaking 5.75 million metric tonnes (MMT) of crude, marking a notable growth of 28 percent compared to the same period last year. The Visakhapatnam Refinery, operating at an enhanced capacity of 11 million metric tonnes per annum (MMTPA), processed 3.23 MMT of crude, surpassing its installed capacity by 116.7 percent. The Mumbai Refinery operated at 105.7 percent capacity and processed 2.52 MMT of crude, achieving its highest-ever quarterly throughput.
Additionally, HPCL’s average gross refining margins (GRMs), excluding export duty, saw a decline during this period. The average GRMs for the July-September 2023 period stood at $13.33 per barrel, compared to $8.41 per barrel in the same period last year. Similarly, the average GRMs for the April-September 2023 period were $10.49 per barrel, showing a decrease from $12.62 per barrel in the corresponding period of the previous year.
Despite the challenges posed by the volatile crude oil market, HPCL remains committed to strengthening its position as a key player in the oil and gas industry. The company continues to focus on operational excellence and cost optimization to mitigate the impact of external factors and drive long-term growth.
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