LPG Price Hike: Major news for common people. Due to elevated crude oil prices, oil refinery companies are currently experiencing substantial financial losses. HPCL is presently dealing with a loss of Rs 245 per cylinder. According to HPCL Managing Director Vikas Kaushal, this loss could escalate to Rs 327 in November. He explained that companies are enduring these losses because of the current geopolitical tensions in West Asia. It’s worth noting that due to multiple conflicts happening worldwide, crude oil prices have skyrocketed. This is why oil marketing companies are struggling with significant losses.
LPG losses of Rs 500 crore in the second quarter
HPCL’s MD revealed that they distributed LPG cylinders from July through September at a loss totaling Rs 500 crore. At present, Indian Oil, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation are selling domestic cylinders at rates lower than market value, causing considerable financial strain for these organizations.
Currently, companies aren’t just dealing with challenges from high crude oil prices. Increasing transportation costs are also affecting their financial performance. The company notes that Suezmax tanker freight rates have climbed to $9 per barrel, compared to $4 per barrel during the first quarter. Additionally, HPCL is exploring urgent procurement options given the present situation.
What is the net profit in the second quarter?
HPCL shared its quarterly performance last week. The company achieved a net profit of Rs 3,625.22 crore in the second quarter, in contrast to a net loss of Rs 12,264.67 crore in the first quarter. The company’s profit decreased by 6.1 percent compared to the same period last year. In the corresponding quarter from the previous year, its profit (after tax) stood at Rs 3,859 crore.
The company’s operational revenue grew by 26.1 percent year-over-year, reaching Rs 1,39,140 crore (Rs 1,391.4 billion). In the prior year, the company had generated Rs 1,103.23 crore (Rs 1,103.23 billion).