State-owned Hindustan Petroleum Corp Ltd (HPCL) today reported 53 percent jump in the December quarter net profit on account of higher fuel sales and inventory gains.
The higher net profit of Rs 1,590 crore in the October- December quarter of the current fiscal was against Rs 1,041 crore clocked in the same period of 2015-16, HPCL Chairman and Managing Director Mukesh K Surana told reporters here.
The company earned USD 6.38 on turning every barrel of crude oil into fuel in the third quarter of 2016-17 as against a gross refining margin of USD 7.86 per barrel a year ago.
He said fuel sales increased 5.6 percent to 9.02 million tons with petrol sales soaring 10.7 percent, diesel sales by 5.1 percent and LPG by 10.5 percent.
HPCL made an inventory gain of Rs 700 crore as by the time it could process and turn crude oil purchased at a particular price into fuel, international rates had gone up, leading to higher valuation of stock.
This compared to an inventory loss of Rs 430 crore.
The company also declared an interim dividend of Rs 22.50 per share, resulting in a total payout of Rs 2,751 crore including dividend distribution tax, he said.
"We have got board approval to raise Rs 6000 crore through domestic and overseas borrowings," he said.
Surana said expansion of Visakh refinery to 15 million tons at Rs 20,928 crore will be completed by 2020.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
