Hindustan Petroleum (HPCL) will continue its plans to spend Rs 12,000 crore on capital expenditure in FY21 despite reporting a sharp drop in net profit in 2019-20.
The company has not cut back on its capex despite the economic fallout of the COVID-19 outbreak.
"We would be spending Rs 12,000 crore towards capital expenditure. For new projects, we will be prioritizing or phasing them out. Our major vizag and Mumbai refinery expansions are in advanced stage and we would be commissioning them this fiscal. So there is no major change to capex," said Mukesh Kumar Surana, HPCL chairman said, as quoted by Mint.
Out of the planned capex, Rs 7,000 crore will be spent on refineries, and Rs 5,000 crore will be invested in marketing and retail, the report said.
State-run HPCL on June 16 reported a net profit of Rs 2,637 crore for 2019-20, a 56 percent drop from Rs 6,029 crore recorded the previous year.
HPCL's profit was hurt by inventory losses due to sharp fall in crude prices and exchange rate fluctuations.
Surana also said the oil marketing company (OMC) will set up 500 fuel retail outlets in 2020-21.
HPCL commissioned 1,194 new retail outlets during the previous fiscal year.
HPCL has begun compressed natural gas (CNG) sales at 476 outlets, Surana added, as quoted by Mint. "Construction activities at our Chhara liquefied natural gasification (LNG) terminal are in progress. We are also participating in cross country natural gas pipelines in joint venture with other companies," Surana said.
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