Hindustan Petroleum Corporation (HINDPETRO) Q4 03/04 earnings summary

Executive summary

• FY 2003-04 delivered record crude throughput of 13.70 MMT, market sales of 19.53 MMT, gross sales of Rs. 56,332.57 crore and net profit of Rs. 1,903.94 crore.

• Dividend recommended at 220%, including interim dividend of 60%; EPS rose to Rs. 56.18 from Rs. 45.37.

• Sales growth of 2.9% exceeded industry growth of 2.4%; the year’s MOU performance received an Excellent rating for the 13th consecutive year.

Financial highlights

• Gross sales rose to Rs. 56,332.57 crore from Rs. 52,698.99 crore; net sales, excluding excise duty, were Rs. 50,339.10 crore.

• Profit before depreciation, interest and tax was Rs. 3,642.66 crore; PBT was Rs. 2,980.43 crore and PAT was Rs. 1,903.94 crore.

• Internal resources generated reached Rs. 1,722.10 crore, versus Rs. 1,375.76 crore; contribution to the exchequer was Rs. 14,872.50 crore.

• Cash and bank balances increased to Rs. 197.06 crore from Rs. 18.55 crore; net current assets rose to Rs. 1,775.02 crore from Rs. 646.72 crore.

Outlook and guidance

• Mumbai refinery green-fuels project approved at Rs. 1,152 crore; intended capacity expansion from 5.5 to 7.9 MMTPA and production of Euro III and Bharat Stage II fuels by 2005.

• Visakh clean-fuels project approved at Rs. 1,635 crore; capacity planned to rise from 7.5 to 8.33 MMTPA, with Euro III petrol completion expected in 2006.

• Plans included ~500 low-cost Hamara Pump rural outlets, expansion of marketing infrastructure, pipeline projects and growth in exploration, gas and exports.

• Future performance remained exposed to crude-price volatility, margin pressure, competition, alternate fuels and regulatory changes; actual results could differ from forward-looking expectations.