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BW Businessworld

In The Big League

HPCL continued its operations without any disruption to ensure availability of LPG, petrol, diesel and other products to the people while safeguarding its stakeholders and the workforce

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Staying true to its motto of ‘Delivering Happiness’, Hindustan Petroleum Cooperation (HPCL) continued to fulfil the nation’s energy needs and enrich the lives of millions in FY20. For HPCL, financial year 2019-20 was historic as it was conferred the Maharatna status. “This entails greater operational and financial autonomy to the corporation,” says Mukesh Kumar Surana, Chairman and Managing Director, HPCL.

PCL delivered a robust performance in 2019-20 by registering sales of 39.6 MMT, its highest ever. It achieved a gross sales revenue of Rs 2,86,250 crore during the year. Profit after taxes (PAT) was Rs 2,637 crore on a standalone basis while the Board of Directors of the company proposed payment of a final dividend of Rs 9.75 per share for FY2019-20.

During the challenging period of lockdowns to contain the pandemic, HPCL continued its operations without any disruption to ensure availability of LPG, petrol, diesel and other products to the people while safeguarding its stakeholders and the workforce, says Surana.

During 2019-20, HPCL’s refineries at Mumbai and Visakh maintained robust performance with combined capacity utilisation of 108.7 per cent and throughput of 17.18 MMT. The upgradation of refineries to produce BSVI compliant transportation fuels was also completed during FY20. The refineries completed the rollout of BSVI grade MS and HSD before the timelines stipulated by the government, CMD said. The Mumbai refinery also achieved its highest ever LOBS (lube oil base stock) production of 478.1 TMT during the fiscal year. The Visakh refinery started the production of VLSFO (very low sulphur fuel oil with sulphur content less than 0.5 per cent) to meet the regulatory requirement of MARPOL. Maximising asset utilisation and reliability improvement of refineries continues to be the key focus areas for HPCL.

MILESTONES GALORE: In FY20 HPCL delivered an excellent marketing performance and exceeded various milestones achieved in previous years including its highest ever sales of 39.6 MMT. The sales were achieved in the backdrop of intense competition and subdued demand growth for petroleum products, Surana said in his address to the shareholders. In LPG and petrol sales, HPCL crossed the 7 MMT mark with a growth of 7.3 per cent and 4.7 per cent respectively in FY20. In the B2B segment, the strategy of maximising volumes in the focus products helped HPCL cross 1 MMT in sales volume in fuel oil (FO), diesel and bitumen each, for the fifth consecutive year. In the highly competitive lubricant markets, sales volume of 650 TMT was achieved making the company the number one lube marketer in India for the seventh consecutive year. In overseas marketing of lubes, the company emerged the largest exporter among Indian OMCs with a turnover of 16.7 TMT in 2019- 20, its highest ever.

“HPCL recognises the importance of developing countrywide infrastructure and customer touch points to cater to the demand growth, minimise the mismatch between regional supply and demand and seamless, cost-efficient distribution of products across the country,” the CMD said.

In FY20, HPCL significantly invested in expansion and upgradation of refineries and supply chain infrastructure with highest ever capital expenditure of over Rs 16,000 crore. The Uran-Chakan LPG pipeline project, commissioned during the year, would reduce LPG tanker movement on Mumbai Pune route substantially, he said. The Palanpur-Vadodara product pipeline project was completed six months ahead of schedule and at 90 per cent of the approved cost. In addition, the capacities of existing pipelines were enhanced by over 6 MMT. HPCL commissioned its 50th LPG plant during the year and the capacity of existing plants were augmented by 360 TMTPA.