HPCL has entered into a share purchase agreement (SPA) for acquisition of shares of HPCL Shapoorji Energy from SP Ports, a joint venture (JV) partner of the company.
HPCL Shapoorji Energy, an associate unlisted company of HPCL, is in process of setting and development of 5 million tonnes per annum (MMTPA) LNG terminal storage and regasification terminal at Chhara, Gujarat.
HPCL held 50% of the equity share capital of HPCL Shapoorji Energy as of 31 December 2020. Since the target entity is still in construction phase, there has been Nil revenue from operations.
The LNG terminal project of the target entity is expected to bring long-term value to the company being a growing segment of the energy basket of the nation.
The consideration for the transaction will be paid in cash and is expected to be completed by 31 March 2021.
HPCL is engaged in the business of refining of crude oil and marketing of petroleum products. It operates through two segments: downstream, and exploration and production of hydrocarbons. As on 31 December 2020, ONGC held 51.11% in HPCL.
The oil marketing company's net profit surged 215.13% Rs 2,354.64 crore in Q3 FY21 as against net profit of Rs 747.20 crore in Q3 FY20. Net sales during the quarter declined by 3% year-on-year (YoY) to Rs 68,359.43 crore.
The scrip rose 0.46% to currently trade at Rs 230.85 on the BSE.
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