HPCL’s Profit after tax of Rs 2,637 Crore for FY 2019-20

Sarkaritel
By Sarkaritel June 17, 2020 06:52


Financial Year 2019-20 specially in last quarter has seen unprecedented event like outbreak of COVID 19 pandemic leading to nationwide lock downs and demand contraction on the back of generally sluggish global economic activities. This coupled with inability of oil producing countries to reach a consensus to rebalance the supply demand situation lead to unprecedented volatility in crude oil and product prices and also in exchange rates.  Surplus inventories, lower demand, geo political situations lead to one of the steepest fall in crude oil prices seen in last two decades. The nationwide lock down to contain the spread of the pandemic in India lead to significant demand contraction in the last part of March 2020 necessitating regulated refinery operations.

During this period, HPCLcontinued its operations without any disruption to ensure availability of LPG, Petrol and Diesel for essential services and generalpublic while ensuring the safety and wellbeing of its stakeholders and the workforce.

Hindustan Petroleum Corporation Limited has recorded Profit afterTax of Rs.2,637 crore during FY 2019-20 as compared to Rs 6,029 crore for the previous year. The decrease in Net Profit is mainly because of impact of inventory losses due to sharp fall in crude prices and exchange rate fluctuations. Gross sales for the FY 19-20 was Rs. 2,86,250 crore as compared Rs.2,95,713 crore for the previous year.

During 2019-20, HPCL refineries at Mumbai and Visakh achieved combined refining throughput of 17.18 Million Metric Tonnes (MMT) with capacity utilization of 109%. Both Mumbai and Vizag Refineries were up-graded to produce BS VI compliant transportation fuels and BS VI grade MS and HSD was rolled out pan India basis as per the timelines stipulated by Government of India.Mumbai Refinery achieved highest ever LOBS (Lube Oil Base Stock) production with 478 TMT. Vizag refinery has started the production of VLSFO (Very Low Sulphur Fuel Oil of Sulphur less than 0.5 %) to meet the regulatory requirement of MARPOL. Lower Refinery thruput this year compared to last year thruput of 18.44 MMT was mainly due to planned shutdowns required for upgrade of the refineries for BS VI fuel and revamps of secondary units at Visakh Refinery to cater to upcoming new primary processing units in VRMP project.

Sarkaritel
By Sarkaritel June 17, 2020 06:52

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