The prospects for Hindustan Petroleum Corporation (HPCL) on performance front are set to brighten up over the next 12-18 months as the worst in earnings are seemingly over, according to equity research firm ICICI Securities.<\/p>\n
The company reported a Profit After Tax (PAT) of Rs 32.2 billion in the fourth quarter ended March 2023, up 80 per cent year-on-year. Higher refining margins and lower \u2018other opex\u2019 drove the operational beat, with higher \u2018other income\u2019 boosting net earnings.<\/p>\n
“With record marketing margins for both petrol and diesel, near-term marketing earnings are set to be materially stronger. Overall, FY24E and FY25E are likely to see a stronger recovery with sharp increase in refining throughput, thanks to commissioning of 7 mtpa Vizag refinery and 9 mtpa Rajasthan refinery,” the firm said in a report.<\/p>\n
In the fourth quarter, the company reported refinery throughput of 5 mt with more than 100 per cent utilisation. Gross Refinery Margins (GRMs) at $14\/bbl jumped by $4.9\/bbl QoQ and $1.6\/bbl YoY and were the key drivers of the outperformance. Domestic marketing volumes at 10.9 mt were up 6.4% YoY even as export sales of 0.2 mt were down 54% YoY.<\/p>\n
“There has been a marked improvement in marketing margins in the past two months, with blended margins for petrol\/diesel estimated at Rs7.2\/ltr in Q1FY24E (till 12th May\u201923). We expect marketing earnings to show stellar growth over FY24E\/FY25E,” ICICI Securities said.<\/p>\n
It added that HPCL is on track to raise its refinery capacity meaningfully by 7 mtpa for its standalone Vizag refineries and another 4-5 mtpa capacity to come via its 50 per cent share in Rajasthan refinery (HMEL). The higher cashflows over FY24E lower the net debt materially.<\/p>\n","protected":false},"excerpt":{"rendered":"
The prospects for Hindustan Petroleum Corporation (HPCL) on performance front are set to brighten up over the next 12-18 months as the worst in earnings are seemingly over, according to equity research firm ICICI Securities. The company reported a Profit After Tax (PAT) of Rs 32.2 billion in the fourth quarter ended March 2023, up 80 per cent year-on-year. Higher refining margins and lower \u2018other opex\u2019 drove the operational beat, with higher \u2018other income\u2019 boosting net earnings. “With record marketing margins for both petrol and diesel, near-term marketing earnings are set to be materially stronger. Overall, FY24E and FY25E are […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[133],"tags":[],"class_list":["post-576771","post","type-post","status-publish","format-standard","hentry","category-oil-gas"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/576771","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=576771"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/576771\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=576771"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=576771"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=576771"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}