HPCL posts record profit in FY-2015, highest since 1974

State-run Hindustan Petroleum Corporation Limited has registered its best ever performance since its formation in 1974 with profit of Rs 2733 crore for the financial year 2014-15.

The new profit also beats by a mile the company’s decade-high profit of Rs 1,734 crore last fiscal, said chairman and managing director Nishi Vasudeva. During FY2014-15, HPCL registered gross sales of Rs 2,17,061 crore, while earnings per share rose to Rs 80.72 and market capitalisation increased by Rs 11,500 crore.

“This increase in profit is especially significant given the huge volatility in the crude and product prices in the international markets and its consequent impact on petroleum companies worldwide,” Vasudeva said in the company's annual report.

“The market sales, including exports, increased by about 3 per cent in 2014-15 to reach about 32 million metric tonnes,” Vasudeva noted. “Domestic sales were about 31 million metric tonnes registering a growth of 2.3 per cent against PSU industry growth of 2.2 per cent. Petrol and LPG sales recorded double digit growth rates and Diesel sales growth was maintained despite re-entry of private players."

International crude oil prices have dropped by more than half, from over $100 per barrel in previous years to less than $45 a barrel. While global prices of almost all commodities have fallen during last year due to factors such as reduced demand from China, crude oil prices have been influenced by other factors also, particularly no production cutbacks from OPEC despite an oversupply driven by US shale output.

Hindustan Petroleum Corporation Ltd.(HPCL)