Hindustan Petroleum Company Ltd (HPCL) on Thursday reported Rs 2,172.14 internet loss in July-September after losses arising from freezing petrol and diesel costs couldn’t be made up by accounting for a one-time authorities grant that got here after the quarter had ended.
Standalone internet lack of Rs 2,172.14 crore within the second quarter of the present fiscal 12 months compares to Rs 1,923.51 crore revenue in the identical interval final 12 months, in accordance with the corporate’s submitting to the inventory exchanges.
That is the primary time that the corporate posted a back-to-back quarterly loss. HPCL posted a file of Rs 10,196.94 crore within the April-June quarter.
Identical to HPCL, Indian Oil Company (IOC) – the nation’s largest oil agency – too had posted a second straight quarterly loss as state-owned corporations offered petrol, diesel and cooking fuel (LPG) at charges beneath price to assist the federal government comprise inflation.
The loss within the second quarter of the present fiscal was regardless of accounting for a one-time grant that the federal government had introduced on October 12 to make up for a lot of the losses that the oil PSUs had incurred on promoting cooking fuel LPG beneath price within the final two years.
HPCL mentioned it obtained Rs 5,617 crore “to compensate under-recoveries incurred on the sale of home LPG in the course of the monetary 12 months 2021-22 and present interval, which has been duly recognised in July-September 2022”.
The federal government had on October 12 prolonged a one-time grant of Rs 22,000 crore to 3 state-owned gas retailers to cowl for losses they incurred on promoting home cooking fuel LPG beneath price within the final two years.
IOC had obtained Rs 10,800 crore, but it booked a Rs 272.35 crore loss in Q2.
HPCL, IOC and Bharat Petroleum Company Ltd (BPCL) didn’t revise petrol, diesel and cooking fuel LPG costs since early April regardless of an increase in enter price. This was with a view to serving to the federal government comprise inflation, which was already above the consolation zone.
The three corporations had reported a mixed internet lack of Rs 18,480 crore within the first quarter (April-June).
Whereas the federal government regulates cooking fuel charges, petrol and diesel costs are deregulated and oil corporations should not compensated for any losses oil corporations incur on them.
Oil Minister Hardeep Singh Puri had, nonetheless, on Wednesday said that his ministry would take up the problem of compensation for petrol and diesel losses with the finance ministry.
The three corporations, who’re imagined to revise petrol and diesel costs day by day in step with price, haven’t modified the charges for over six-and-half-months now – the longest freeze in charges since gas pricing was deregulated.
For the primary half of the present fiscal, HPCL now has a cumulative standalone internet lack of Rs 12,369.08 crore – double the Rs 6,683.14 crore internet revenue it had earned within the full 2021-22 (April 2021 to March 2022) fiscal.
HPCL mentioned it earned USD 12.62 on turning each barrel of crude oil into fuels throughout April-September in comparison with a gross refining margin of USD 2.87 a barrel.
“That is earlier than factoring the influence of particular further excise obligation and street and infrastructure cess levied on export of choose petroleum merchandise efficient July 1, 2022,” it mentioned. “Throughout this era, as a result of depressed advertising and marketing margin on motor fuels (petrol and diesel) and LPG, the profitability is impacted.” The agency additionally booked a Rs 1,548.51 crore international trade loss within the interval.
The consolidated internet lack of Rs 2,475.69 crore in July-September and Rs 8,557.12 crore in April-September compares to a revenue of Rs 1,918.89 crore in Q2 and Rs 3,922.79 crore in H1 of the final 12 months.
Income from operations soared 30 per cent to Rs 1.13 lakh crore in July-September, the submitting confirmed.
HPCL offered extra petroleum merchandise domestically in Q2 (9.87 million tonnes versus 8.79 million tonnes final 12 months) and refined extra crude oil (4.49 million tonnes versus 2.53 million tonnes in Q2 of FY22).
Later in an announcement, HPCL mentioned, “With the modified enter price dynamics throughout Q2 FY22-23, the corporate was in a position to negotiate higher costs and partially mitigate the impact of excessive prices. Nonetheless, excessive enter prices and consequent depressed advertising and marketing margins continued to influence the profitability”.
The agency earned USD 8.41 on turning each barrel of crude oil into gas in July-September as in comparison with a gross refining margin of USD 2.44 a 12 months again.