Hindustan Petroleum Corporation (HINDPETRO) Q4 01/02 earnings summary

Executive summary

• FY 2001-02 turnover and profit declined amid weak demand and a fall in petroleum-product consumption; cost reductions helped mitigate operating pressure.

• The Administered Price Mechanism (APM) was dismantled effective April 1, 2002, opening transport-fuel marketing to greater competition and market-based pricing.

Financial highlights

• Turnover was Rs. 452,865 million vs Rs. 471,175 million in FY 2000-01; gross profit/PBDIT was Rs. 20,467 million vs Rs. 21,409 million.

• PBT was Rs. 12,225 million vs Rs. 13,202 million, while PAT was Rs. 7,880 million vs Rs. 10,880 million; EPS was Rs. 23.26 vs Rs. 32.12.

• Market sales, including exports, were 18.02 MMT vs 18.39 MMT; crude throughput was 5.63 MMT at Mumbai and 6.70 MMT at Visakh.

• Internal resources generated were Rs. 11,126 million vs Rs. 11,475 million; contribution to the exchequer rose to Rs. 112,466 million from Rs. 107,335 million.

Outlook and guidance

• FY 2002-03 plans included 200+ new retail outlets, resiting 200 unviable outlets, modernizing 400+ outlets, bringing 1,000 outlets under Club HP and raising company control of the network to 70%.

• The 9 MMTPA Punjab refinery and associated facilities were targeted for completion by 2005-06; project plans included a 140 MW captive power plant and a 1,011 km crude pipeline.

• Auto LPG plans called for 30 dispensing stations by the following year and 50 by end-2003-04; ERP pilot implementation was planned for FY 2002-03 before wider rollout.