Hindustan Petroleum Corpn, has posted higher net loss of Rs 607.67 crore for the first quarter of the current fiscal compared to net loss of Rs 507.89 crore for the corresponding previous period, mainly due to selling petroleum products below cost price. However, total income (net of excise) increased 37.19 per cent to Rs 20,776.19 crore (Rs 15,143.71 crore). HPCL earned $9.3 from processing each barrel of crude oil into fuels. The refineries operated at 130 per cent of capacity during the quarter under review, compared to 90 per cent earlier.
A net amount of Rs 90.42 crore has been accounted as discounts received from refineries on the purchase of products from them towards sharing under-recoveries on petrol, diesel, kerosene sold through the public distribution system, and domestic LPG. The company suffered under-recoveries to the tune of Rs 2,133 crore (Rs 1,249 crore).
Financial results for the quarter have been adversely affected due to high crude and product prices, which could not be fully passed on to the consumers. The under-recoveries on petrol, diesel, kerosene and LPG were partially compensated by the upstream oil companies as advised by the Government. Accordingly, an amount of Rs 1,236.11 crore (Rs 686.90 crore) has been accounted towards discount received from ONGC and GAIL (India) on purchase of crude oil, LPG and kerosene.
The company proposes to spend Rs 900 crore on its retail network, of which Rs 200 crore would be spent on the automation project. HPCL has 7,500 retail outlets, of which 600 are in rural areas. It plans to add 650 retail outlets, of which 500 would be in the rural areas. On the Bhatinda refinery project, the company was going ahead on its own but was open to roping in partners.
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| Posted : 7/27/2006 |
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