HPCL Q3 Results 2022-23

Mumbai – 09.02.2023

Hindustan Petroleum Corporation Limited (HPCL) has reported Revenue from operations of ₹ 1,16,127 crore for the period Oct-Dec 2022 registering growth of 12% over the corresponding period of previous year (₹ 1,03,422 crore). For the period Apr-Dec 2022, the growth in Revenue from operations was 31% taking the same to ₹ 3,51,748 crore as compared to ₹ 2,68,608 crore during the corresponding period of previous year.

The gradual softening in international oil prices helped in partially restoring the marketing margins on Transport fuels from unprecedented levels prevalent during Apr-Sep 2022. However, marketing margins continued to remain suppressed for select Transport fuels, thereby impacting the profitability, resulting in Net Profit of ₹ 172 crore during Oct-Dec 2022 as compared to Profit after Tax (PAT) of ₹ 869 crore during the corresponding period of previous year. For the period Apr-Dec 2022, Net Loss is ₹ 12,197 crore as compared to Profit after Tax (PAT) of ₹ 4,587 crore during the corresponding period of previous year.

On a consolidated basis, HPCL reported Net Loss of ₹ 10,589 crore for period Apr-Dec 2022 as compared to consolidated PAT of ₹ 5,276 crore during the corresponding period of previous year.

HPCL refineries at Mumbai and Visakh processed highest ever quarterly crude thru-put of 4.83 Million Metric Tonnes (MMT) during Oct-Dec 2022 (4.24 MMT crude processed during the corresponding period of previous year). The thru-put during Apr-Dec 2022 period was 14.13 MMT as compared to 9.28 MMT crude processed during Apr-Dec 2021.

Average GRMs (Gross of export duty) for the period Oct-Dec 2022 were US$ 9.14 per barrel (US$ 6.39 per barrel during the corresponding period of previous year) and Average GRMs (Gross of export duty) for period Apr-Dec 2022 were US$ 11.40 per barrel compared to US$ 4.50 per barrel during the corresponding period of previous year.

During Oct-Dec 2022, HPCL achieved highest quarterly total sales volume of 11.25 MMT (10.54 MMT during corresponding period of previous year) representing a growth of 6.7%. The company recorded higher than Industry growth in major lines of MS, HSD, LPG, Lubes and Furnace Oil. The total sales volume during Apr-Dec 2022 was 32.34 MMT (28.47 MMT during corresponding period of previous year) with growth of 13.6%. During this period, HPCL has outperformed Industry in all major products except ATF.

Strategic Updates

During Apr-Dec 2022, HPCL invested ₹ 9,240 crore towards strengthening of Refining & Marketing infrastructure including equity investment in its JVCs and subsidiaries.

Our Visakh Refinery Modernization Project (VRMP) for enhancing the refining capacity from 8.3 MMT to 15.0 MMT is in advanced stage of completion with all the utilities required for new units already commissioned. The main units are slated to chronologically commission starting with CDU Commissioning in Q4 FY23. Execution of Residue Upgradation Facilities (RUF) as part of VRMP is also progressing well. Substantial improvement in refinery complexity index, enhanced distillate yield and improved GRMs are the benefits envisaged from the project.

Towards strengthening LPG infrastructure, construction of a new LPG plant at Patalganga (Maharashtra) has been completed during the period.

The 5 MMTPA LNG Terminal constructed through our subsidiary Company, HPCL LNG Limited, is nearing completion. The work on Pipeline connectivity by GSPL is underway and is expected to be ready by Jun’23 and the terminal shall be commissioned thereafter.

HPCL along with its JVs have authorization for setting up of CGD network in 23 Geographical Areas (GA’s) comprising 48 districts spread across 12 states with planned investment of over Rs. 10,000 Crores during next few years. The project activities are in progress, CNG Stations have been commissioned in GA’s allotted till 10th Round of Bidding and pipeline laying/registration for D-PNG Connections has commenced.

On the renewable front, construction of compressed Biogas Plant (CBG) of 14TPD capacity at Badaun, UP is nearing completion with pre-commissioning activities underway for boiler unit post CEA inspection.

The works on other major projects like Rajasthan Refinery Project (HRRL), 80 TMT LPG cavern at Mangalore are progressing well.

Foraying into Petrochemicals, HPCL launched its Petrochemical Brand ‘HP DURAPOL’ covering various grades of HDPE (High Density Polyethylene), LLDPE (Linear Low-Density Polyethylene) and PP (Poly Propylene) that will cater to several end-use segments like Food, Agriculture, Textile, Construction, Medical etc. to name a few.

HP Green R&D Centre (HPGRDC) – One of the fastest growing R&D institutions in the Oil & Gas sector in the country received its 27th Patent during the current year and attained a key milestone of total 150 Patents under its name.

New Infrastructure/facilities added during Oct-Dec’22 as part of our initiatives towards transition to Low Carbon Economy:

• MoU with the NTPC Green Energy Limited (NGEL), a wholly-owned subsidiary of NTPC Limited to expand into Renewables for leveraging the business opportunities as well as meet internal requirements of “Round the clock Green Power” for our refineries, locations, retail outlets and EV charging stations.
• HPCL launched “HP Bio-Marine Fuel (10%)” – a green fuel (bunker) for ships. This is the first Bio-Marine (Biodiesel blended) Fuel supply by any OMC in the Country meeting the stringent global norms for Marine Fuel.
• Solarisation was completed at 744 retail outlets during the period, taking the total number to 7,986 as on December 2022. With this 38% of HPCLs’ retail network operates on renewable energy up from 32% as of March 22.
• Commissioned 42 new EV charging stations during the period. HPCL now has EV Charging facilities at 1,198 outlets as of Dec’22.
• CNG facilities were added in 68 retail outlets taking the total number of HPCL outlets with CNG facilities to 1,288 as of Dec’22.
• HPCL is the first OMC to commence 12% ethanol blending in Dec’22. Now 27 HPCL Terminals are blending ethanol at 12%.
• With Ethanol blending at 10.11% during the period April-Dec’22, the Ethanol Blended quantity of 92.76 Cr. Litres helped in reduction of GHG Emissions by estimated 18.5 lakh MT coupled with estimated forex savings of ₹ 3,200 crores.
• With 2 more Terminals enabled as SMART Terminals, HPCL now has 62 such SMART Terminals that operate with minimal manual interventions, increased transparency & productivity.
• New LOIs equivalent to 59.1 TMTPA CBG Production capacities have been issued under the Tie-up for SATAT scheme taking the tie-ups for CBG Production Capacity equivalent to 939.9 TMTPA.
• With the commissioning of CBG Plant at Osmanabad (Maharashtra) under SATAT scheme, HPCL now has 4 functional CBG Plants under the scheme.
• Net Zero Energy Rating for Admin Block of HPCL Green R&D Centre.

During the period, HPCL was also awarded with ‘CII Supply Chain and Logistics Excellence (SCALE) Awards 2022” for exemplary performance in improvement of ethanol logistics in the Country. Our Branded Retail Venture “HaPpyShop” was awarded “Emerging Brand of the Year” award at Global Marketing Excellence Awards 2022.

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