The Hindu Business Line : HPCL, BPCL run up losses in excess of Rs 1,000 cr each

OIL PSUs Hindustan Petroleum Corporation Ltd (HPCL) and Bharat Petroleum Corporation Ltd (BPCL) have posted huge net losses in the third quarter of the current fiscal, both blaming "high crude and product prices which could not be fully passed on to the consumers" for the losses.

While HPCL posted a net loss of Rs 1,077.75 crore for the quarter against a Rs 235.9-crore net profit a year ago, BPCL's losses were only marginally lower at Rs 1,024.2 crore, also against a net profit of Rs 145.7 crore in 2004-05.

The similarities between the two oil retailing companies do not end there as both saw their net sales go up by 12 per cent - at Rs 18,260.99 crore (Rs 16,227.11 crore) for HPCL and at Rs 18,853.4 crore (Rs 16,567 crore) for BPCL.

The adverse third quarter results has seen HPCL run up a net loss of Rs 1,607.78 crore in the first nine months; in the case of BPCL, the nine-month net loss was Rs 1,659.5 crore. The two companies had posted net profit of Rs 1,277.33 crore and Rs 1,075.8 crore respectively for fiscal 2005.

The two companies saw their interest costs too rise in a similar fashion during the quarter. For HPCL, it was up 75 per cent at Rs 55.85 crore (Rs 31.93 crore); it was a 54-per cent rise for BPCL at Rs 58.5 crore (Rs 37.9 crore).

The comparison table does not end there as the two companies shared similar graphs in their gross refining margins (GRMs) too. HPCL saw GRMs fall by around 50 per cent during the first nine months ($2.68 per barrel at Vizag Refinery from $5.39 last year and $ 2.54 a barrel at Mumbai Refinery from $5.18). For BPCL, it was $2.41 per barrel as compared to $5.22 a year back, again a 50-odd per cent fall.

HPCL received Rs 2,040.78 crore during the first nine months towards discount receivable from ONGC/GAIL on purchase of crude oil/LPG/kerosene. In the case of BPCL, it was Rs 2,100 crore. HPCL received Rs 260.38 crore towards discount receivable from refineries on the four products; BPCL got Rs 222.21 crore.

During the third quarter, HPCL had a crude throughput of 3.68 million tonnes, down marginally from 3.82 million tonnes a year ago; BPCL's crude throughput too was down in the third quarter at 2.94 million tonnes from 2.23 million tonnes last year. There was one difference, as against the HPCL market sales that fell to 5.10 million tonnes (5.22 million tonnes), BPCL market sales actually grew during the quarter at 5.77 million tonnes as against 5.51 million tonnes a year ago.