Monday 20 May 2019

HPCL Q4 and FY 2018-19 results



1.    Net Profit increase by 70% in Q4, Rs 2,970 Crs vs previous Q4 net profit of Rs 1,748 Crs
2.    FY 2018-19 Net profit Rs 6,029 Crs - Third consecutive year of Rs 6,000 Crsplus
3.    Highest ever physical performance in FY 2018-19: Refinery throughputof 18.44 MMT and Marketing sales of 38.71 MMT
April – March 18-19
Hindustan Petroleum Corporation Ltd. (HPCL) has recorded excellent physical and financial performance during the financial year 2018-19. Corporation achieved EBITDA of Rs 13,077 Crs in FY 2018-19 as compared to EBITDA of Rs 12,522 Crs in FY 2017-18. Inspite of volatile crude prices, lower cracksand depreciation of rupee, HPCL was able to achieve higher EBITDA due to increased thruput at refinery, higher marketing sales volume, better operational efficiency and inventory gains. Profit After Tax (PAT) of Rs 6,029 crore on standalone basis during 2018-19, as compared to PAT of Rs 6,357 crore during 2017-18. Gross Sales during 2018-19 increased to Rs 2,95,713 crore as against Rs 2,43,227 crore during the previous financial year.
During 2018-19, HPCL refineries at Mumbai and Visakh have maximized crude processing and achieved the highest ever combined refining throughput of 18.44 Million Metric Tonnes (MMT) with capacity utilization of 117%, compared to throughput of 18.28 MMT achieved during 2017-18. Both refineries recorded the best ever crude throughput performance on individual basis as well. Maximization of crude processing at refineries helped HPCL achieve the highest ever production of LPG (896 TMT), Lube Oil Base Stock (474 TMT) and Bitumen (1,267 TMT). HPCL refineries also achieved excellent performance in the area of energy efficiency and recorded the lowest ever combined specific energy consumption during the year. HPCL achieved combined Gross Refining Margin of US$ 5.01 per barrel during the year as compared to US$ 7.40 per barrel during 2017-18. GRMs were lower in comparison to previous year mainly on account of reduced cracks in all products except HSD and FO, higher fuel & loss cost due to increased crude price and exchange rate variation loss due to rupee depreciation.
During 2018-19, HPCL achieved the highest ever sales volume of 38.7 MMT with a domestic sales growth of 4.7% over historical. Domestic sales of Motor Spirit (Petrol) increased by 6.8%, High Speed Diesel by 2.1%, LPG by 7.1%, Aviation Turbine Fuel (ATF) by 20%, Bitumen by 26.4% and Lubes by 8%, compared to financial year 2017-18.
HPCL continues to be India’s largest lube marketer for the sixth consecutive year with overall lubricant sales volume of 650 TMT during the year. HPCL recorded market share gain of 0.17% in Motor Fuel sales amongst PSU OMCs during 2018-19. HPCL continues to be India’s second largest LPG marketer. In Industrial & Consumer (I&C) business, HPCL exceeded 5 MMT sales volume for the third consecutive year.
HPCL reported consolidated PAT of Rs 6,691 crore during 2018-19 as against Rs 7,218 crore during previous financial year. The consolidated PAT is lower due to reduction in profits of HMEL &MRPL , resulting in reduction of HPCL’s share of profits. Further share of profit from MRPL for FY 2018-19 was Rs 58 crore as against Rs 338 crore during 2017-18.
For the year 2018-19, HPCL has proposed a final dividend of Rs. 9.40 per share, which combined with the interim dividend Rs 6.50 per share totals to a dividend of Rs.15.90 per share.
QUARTER ENDING 31st MARCH, 2019
For the period January-March 2019, HPCL recorded a Profit after Tax (PAT) of Rs 2,970 crore against a PAT of Rs 1,748 crore for the corresponding quarter of previous financial year. The gross sales wasRs. 72,840 crore during January-March 2019 as compared to Rs. 66,351 crore for the period January-March 2018. Increase in profits is mainly attributable to increased sales, improved logistics, efficiency, inventory gainsand rupee appreciation during Q4 of financial year ending 31st March 2019.
During January-March 2019, HPCL recorded domestic sales volume of 10.03 MMT with a growth of 6.5% over the corresponding quarter of previous year. The sales of Motor Spirit (Petrol) increased by 8.5%, High Speed Diesel by 3.0%, LPG by 12.9%, Aviation Turbine Fuel (ATF) by 17%, Bitumen by 24.2% and Lubes by 5.3% over the corresponding period of previous financial year.
The refineries at Mumbai and Visakh processed 4.60 MMT of crude during January-March 2019. The combined GRM during the period January-March 2019 was US$ 4.51 per barrel as compared to US$ 7.07 per barrel in the corresponding previous period. Refinery margins are lower mainly due to low cracks in light and middle distillate products.
During 2018-19, a number of capital projects were completed with highest ever overall capital expenditure of Rs 11,689 crore. Pipeline project for capacity expansion of RamanmandiBahadurgarh Pipeline (RBPL) from 4.71 to 7.11 MMTPA was completed within the scheduled time and cost.  POL supply network was strengthened with commissioning of new railway tank wagon gantry at Visakh black oil terminal, revamp of the existing tank wagon facility at Jabalpur depot and commissioning of new aviation fuel stations at Amritsar, Bhubaneshwar, Raipur and Kolhapur airports. LPG supply infrastructure was augmented with commissioning of a new LPG bottling plant at Warangal (Telangana) with bottling capacity of 60 TMPTA and additional bottling capacity augmentation of 330 TMTPA at existing LPG plants.
478 new retail outlets and 1,018 new LPG distributorships were commissioned during 2018-19 taking the number of total retail outlets to 15,440 and number of total LPG distributors to 5,866 as of 31st March, 2019.
To enhance customer value and operational efficiency, a number of initiatives were undertaken during the year including procurement and roll out of Four (4) Rail rakes for LPG transportation; launch of mobile fuel dispenser ‘HP Fuel Connect’; and implementation of SMART terminal initiative at various locations.
HPCL has expanded its global footprints and is supplying HP Lubricants to 11 Countries. Newly formed wholly owned subsidiary “ HPCL Middle East FZCO” in Dubai has also commenced its operations.
HPCL’s Visakh Refinery Modernization Project and Mumbai Refinery expansion Project are progressing well. Major contracts have been awarded and site construction activities are in progress for both the projects. Licensor selection for all the process units has been completed for 9 MMTPA greenfield refinery cum petrochemical complex project of HPCL Rajasthan Refinery Limited (HRRL) and site construction activities are in progress at Pachpadra in Barmer. Financial closure is achieved for Rajasthan Refinery project. HPCL R & D was awarded 12 national and international patents during the year.
HPCL’s major ongoing pipeline projects
·        Mundra Delhi Pipeline (MDPL) capacity expansion,
·        Extension line from Palanpur to Vadodara including new greenfield terminal at Vadodara,
·        Visakh Vijayawada Secunderabad pipeline (VVSPL) capacity expansion and
·        Extension of Visakh Vijayawada Secunderabad pipeline (VVSPL) from Vijayawada to Dharmapuri& construction of marketing terminal at Dharmapuri are on track.
In addition, UranChakan LPG pipeline project is in advanced stage of completion.
HPCL has been authorized to set up CGD networks in 9 states. With this HPCL on its own and through its JV companies has authorization for CGD network in 20 geographical areas in 9 states. Environmental clearance is received for LNG, regasification terminal being set up in Joint Venture at Chhara Gujarat.
To help increase coverage of clean cooking fuels in country, HPCL has provided about 1.97 crore new LPG connections under Pradhan MantriUjjwalaYojana (PMUY) to women from low income households.In addition, HPCL has sensitized over 34 lakh people about safe and sustainable usage of LPG by conducting over 27,000 LPG Panchayats across the country as of 31st March, 2019.
To bring in a positive change and enrichment in the lives of less privileged people, HPCL has implemented a number of CSR initiatives in the area of Child education, Health Care, Education and Skill Development with an overall CSR spend of about Rs. 160 crore during 2018-19.To support Swachh Bharat Abhiyaan, HPCL has constructed over 2,300 new toilets in various schools across the country as of 31st March, 2019.
For outstanding performance across various spheres of business, HPCL was recognized with several prestigious International and National awards during the year. HPCL was conferred with –
  • “Oil Marketing Company of the Year” award by Federation of Indian Petroleum Industry (FIPI) for the third consecutive year
  • “Best Navratna” award in ‘Manufacturing, Processing and Generating Sector’ category at Dun & Bradstreet PSU Awards 2018
  • “Forecourt Retailer of the Year” award at Star Retailer Awards 2018
  • “Vigilance Excellence Award 2018” for ‘Best Institutional Practices’ by Central Vigilance Commission (CVC)

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