Hindustan Petroleum Gain Dives 56% in June Quarter

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 State-run refiner Hindustan Petroleum Corp (HPCL) on Friday reported a 56 per cent drop in its net profit for the first quarter of the current fiscal caused by inventory losses and consequent lower refining margins.

 HPCL's net profit stood at Rs. 924.75 crore for the first quarter of the current fiscal, as compared to the Rs. 2,098 crore earned during the corresponding quarter of the last financial year.

 Inventory loss, which occurs when crude oil prices fall after procurement and before marketing, during the quarter in consideration came in at Rs. 1,595 crore.

 "During the first quarter of the financial year 2017-2018, there was an inventory loss of Rs. 960 crore in marketing and Rs. 635 crore in crude oil oil inventory. Comparably, there was an inventory gain of Rs. 1,935 crore in the corresponding quarter of the last financial year, " HPCL Chairman M.K. Surana said. 

 Gross refinery margin (GRM), denoting earnings on refining a barrel of crude, for the first quarter stood at $5.86 per barrel, as compared to the GRM of $6.83 during the corresponding period of the last financial year.

 The Indian basket of crude oils closed trade on Thursday at $ 51.48 a barrel.

 HPCL stock closed trade on Friday at Rs. 431.65 a share, up Rs. 34.35, or 8.65 per cent, over its previous close on the BSE. 

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