Indian state-owned refiner HPCL reported a loss of INR 102bn ($1.3bn) in the quarter ended June compared to a profit of INR 18.8bn ($240mn) the previous year. The muted performance was attributed to erosion in marketing margins on Motor Fuels and LPG due to holding-off price revisions during the quarter. Crude oil imports during the quarter averaged $109/bbl while retail pump prices were about $85-86/bbl. Total income rose 55.8% YoY to INR 1.2tn ($16bn). The company booked a charge of INR 9.45bn ($120mn) related to foreign currency transactions and translations. Average gross refining margins were $16.7/bbl vs. $3.3/bbl last year. HPCL’s debt to equity ratio stood at 1.7x, up from 1x in June 2021. The company approved an increase in borrowing limits from INR 300bn ($3.8bn) to INR 500bn ($6.3bn) over its paid-up capital, “apart from temporary loans obtained from the Company’s Bankers in the ordinary course of business and for creation of charge/provision of security on the said borrowing.”

HPCL’s USD 5.45% 2026s were up 0.19 points to 93.75, yielding 7.20%.

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