Hindustan Petroleum Corporation (HINDPETRO) Q4 96/97 earnings summary

Executive summary

• FY1996-97 delivered record turnover of Rs.18,089.09 crore and record net profit of Rs.612.22 crore; Government recognition as a Navratna and strong operating results supported a 40% recommended dividend.

• Refining and marketing volumes reached new highs, while major refinery, pipeline, port and LPG projects expanded capacity and infrastructure.

Financial highlights

• Turnover Rs.18,089.09 crore, up 21.70% YoY; profit before depreciation, interest and tax Rs.1,332.15 crore vs Rs.1,090.62 crore.

• PBT Rs.941.70 crore vs Rs.845.95 crore; PAT Rs.612.22 crore, up 19.05% YoY from Rs.514.24 crore.

• Internal resources generated Rs.813.25 crore vs Rs.641.91 crore; value added Rs.2,673.68 crore vs Rs.2,340.57 crore.

• Recommended dividend 40% vs 35% for FY1995-96; payout Rs.83.55 crore.

• Profit for the year included Rs.264.24 crore received from OCC for prior-year margin updates and other claims.

Outlook and guidance

• Targeted expansion of refining capacity, including JVCs, to 28 MMTPA by 2000, with corresponding marketing facilities.

• Visakhapatnam refinery expansion from 4.5 to 7.5 MMTPA expected completion by September 1998; expected foreign-exchange savings Rs.388 crore annually.

• MRPL expansion from 3 to 9 MMTPA expected mechanical completion by August 1999; estimated project cost Rs.3,690 crore.

• Business Process Re-engineering focused on customer orientation, productivity, technology upgrades, cost control and quality.