Hindustan Petroleum Corporation (HINDPETRO) Q4 02/03 earnings summary

Executive summary

• FY 2002-03 delivered turnover above Rs. 50,000 crore and PAT of Rs. 1,537.36 crore, up from Rs. 787.98 crore; market sales reached a record 18.84 MMT.

• Higher refining margins, record combined refinery throughput and sales growth above the industry supported the year’s performance.

Financial highlights

• Turnover was Rs. 52,605.14 crore vs. Rs. 45,309.67 crore; gross profit/PBDIT was Rs. 3,139.06 crore vs. Rs. 2,046.69 crore.

• PBT reached Rs. 2,411.79 crore vs. Rs. 1,222.48 crore; PAT was Rs. 1,537.36 crore vs. Rs. 787.98 crore.

• Internal resources generated were Rs. 1,375.76 crore; duties and taxes contributed to the exchequer totaled Rs. 13,136.33 crore.

• Proposed dividend was 200%, including 20% interim, vs. 100% for FY 2001-02; dividend including distribution tax totaled Rs. 756.92 crore.

Outlook and guidance

• Mumbai and Visakh refinery upgrade projects were underway, with planned investments of Rs. 1,152 crore and Rs. 1,635 crore, respectively, to produce cleaner fuels and expand capacity.

• A refinery project in Punjab was rescaled from an initial 9 MMTPA plan to 6 MMTPA initially, with expansion dependent on improved demand-supply conditions.

• Growth priorities included rural LPG, retail automation, cleaner gaseous fuels, upstream exploration and production, equity oil, risk management and international markets.

• LPG demand was projected to rise at 8% CAGR over the Tenth Plan period; rural LPG demand was projected to grow 17.5%.