MK Surana, Chairman and Managing Director, HPCL in an exclusive interview to CNBC-TV18 after reporting quarter numbers said the quarter gone by saw impressive growth of 30 percent.
Oil marketing company Hindustan Petroleum Corporation (HPCL) said profit in April-June quarter jumped 30 percent to Rs 2,098.4 crore compared to year-ago period. Better operational performance following fall in crude oil prices aided the bottomline.
The company has plans to grow both their Visakhapatnam (Vizag) refinery and Mumbai refinery. The vizag expansion plant is already work in progress, he said. The Mumbai refinery post the expansion will also become BS-VI compliant.
However, on the volume front he is confident of meeting last year’s levels of 34 million tonnes, if not bettering it.
Below is the verbatim transcript of MK Surana's interview to Anshu Sharma on CNBC-TV18.Q: How was the first quarter gross refining margins (GRMs) and what is the expected volume in terms of GRM for the full year?A: The first quarter has been good for us, impressive growth of around 30 percent compared to Q1 of 2015 and we have clocked a net profit of Rs 2,098 crore. The GRMs for this period had been USD 6.83 per barrels for the Q1.Q: Going to inventory gains how was it in the first quarter?A: No, we had an inventory gain of around Rs 1,100 crore in Q1 of 2016.Q: And how is the marketing margins going on for this quarter if you could highlight?A: Marketing margins it is more or less the same as the last year for the quarter 1.Q: And coming to refinery throughput for this quarter where does it stand for HPCL?A: Refinery had a crude throughput of 4.48 million metric tonnes compared to 3.75 million metric tonnes last year that was around 19 percent growth.Q: And how is the capex plan going on for HPCL and are you looking at expanding the Mumbai refinery?A: Yes, we have got a plan to expansion of both the refineries as I have already mentioned you the Vizag refinery expansion plan is already there and Mumbai refinery expansion plan also is already there to increase its capacity from 7.5 to 9.5 million metric tonnes.In fact, we have upgraded the from 6.5 to 7.5 only the last month we inform and 7.5 to 9.5 is the project which is already we have taken it up and it will also make the refinery compliant for BS-VI and subsequent to parallel to that we will also be taking the bottom upgradation facilities in Mumbai. The Vizag expansion plan is already on to increase its capacity from 8.33 million tonnes to 15 million tonnes along with bottom upgradation and BS-VI compliant.Q: And what are the expected volumes by the end of this total financial year?A: We did 34 million tonne last year, so we will hope to at least either meet it or do it better. Last year it was a good growth and so we are looking to do it.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
