HPCL FY10 profit up 126%

Hindustan Petroleum Corporation Limited reported sales of petroleum products (including exports) during the year 2009-10 at an all time high of 26.3 million tones, registering an increase of 3.5% over the previous year. The pipeline thruput increased to 11.95 million tonnes as compared to 10.58 million tonnes in the previous year, a growth of nearly 13%. Turnover for the year amounted to Rs. 1,08,599 crores.

The refineries at Mumbai and Visakh processed 15.76 million tonnes of crude with the combined GRM recorded at US $ 2.68 /bbl.

On the financial front, the Profit after Tax (PAT) increased by 126% from Rs.575 crores in the previous year to Rs 1,301 crores during the current year. The higher PAT was achieved after absorbing an under-recovery of Rs 1,225 crores on sales of sensitive petroleum products during the year. There was a sharp reduction in the  interest cost to  Rs 904 crores, lower by Rs 1179 crores from the earlier year. The depreciation charge was Rs 1,164 crores vis-à-vis Rs 981 crores of the earlier year mainly due to commissioning of the Euro IV fuel projects at Mumbai and Visakh refineries.

For the year 2009-10, HPCL has proposed a dividend of Rs 12.00 per share, which is higher than that of last year at Rs 5.25 per share. The dividend would result in a total payout of Rs 473 crores including dividend distribution tax.

The year 2009-10 witnessed many milestones in HPCL and its joint ventures :

• The facilities for Euro III / Euro IV petrol production at Mumbai Refinery and at Visakh Refinery have been commissioned during this year.
• The 9 MMTPA  JV Refinery at Bathinda, being constructed by HPCL – Mittal Energy Ltd. (HMEL) has achieved over 80% overall progress, about 2% ahead of schedule. Mechanical completion is expected by March, 2011.
• A Rs 600 crores, 250 Kms product pipeline from Bathinda Refinery to Delhi, being constructed by HPCL, is nearing completion.
• At Mumbai, the Lube Refinery is being upgraded to produce Group II & III Base Oils at a cost of Rs 1,000 crores. The project is under commissioning.
• Single Point Mooring (SPM) system at Vishakapatnam has been mechanically completed at a cost of Rs 550 crores. This will enable receipt of crude in Very Large Crude Carriers (VLCCs) of 250,000 MT as against current cargo size of 130,000 MT.
• Construction of five major oil installations has been initiated at Ennore, Visakh, Bokaro, Bihta and Tikri Kalan. Additionally, new LPG plants are also coming up at Visakh, Hazira and Bathinda.  HPCL would be investing over Rs 2,500 crores in these projects which would be completed progressively during the year 2010-11.
• A new wholly owned subsidiary, HPCL Biofuels Limited, was incorporated in October, 2009 to produce ethanol (for blending with petrol) in East and West Champaran districts in Bihar. These projects are expected to be commissioned by December, 2010 and will benefit large number of farmers besides providing 12 MW electricity in each of the districts. The total cost of the two projects is over Rs 700 crores.