Indian state-owned oil refiner Hindustan Petroleum Corporation on Friday said it posted its biggest quarterly profit in nine years, helped by a fall in crude prices and higher refinery margins.
Net profit for the fourth quarter ended 31 March jumped about 80 per cent to Rs 3,223 crore from Rs 1,795 crore a year earlier, according to a stock exchange filing.
The sale of products grew nearly 8.6 per cent to Rs 1.14 lakh crore, with domestic sales rising to 10.92 million metric tonnes (MMT) from 10.26 MMT a year earlier.
Indian refiners’ crude oil processing stayed near all-time highs in March, catering to solid seasonal demand as fuel consumption jumped to a record high, driven by robust economic activity in the world’s third-largest oil consumer.
The Mumbai-based company also said that its average gross refining margin – profit from making refined products from one barrel of oil was USD 14.01 per barrel for the quarter, compared to USD 12.44 per barrel a year ago.
In March, oil prices slumped to their lowest in more than a year, a positive for refining companies that import crude oil as their raw material.
Brent crude prices have fallen nearly 49 per cent from a peak last year, helping lift oil companies’ marketing margins.
Hindustan Petroleum in its statement said that energy transition initiatives will be consolidated under a new company, adding that it will also explore carving out its lubricants business.
The company is the first among its state-run peers, including refiner Indian Oil and oil marketing company Bharat Petroleum to report quarterly results.