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Energy

HPCL clocked the highest-ever throughput in refineries in Q4, says CMD MK Surana

Updated : May 21, 2019 10:32 AM IST

Hindustan Petroleum Corporation Ltd (HPCL) posted a super set of earnings in Q4. CNBC-TV18’s Anshu Sharma caught up with MK Surana, CMD of HPCL and asked him what led to the higher than expected EBITDA.

“HPCL did well as far as our physical performance is concerned and the financial performance is concerned. The EBITDA is higher because of the higher refinery throughputs, we did the highest ever throughput in the refineries, we also did the highest ever marketing sales and we brought in some of the logistic efficiencies as I mentioned that we had done some secondary distribution realignment, refinery the specific energy consumption was the lowest then we also got help with some of the inventory gains,” he said.

“On the negative side, there were lower cracks and there was some exchange rate losses. So some total we could do the positive factors and we had the higher EBITDA and the profit before tax (PBT),” he added.

“Our marketing volume was 38.71 million metric tonne as compared to 36.87 million metric tonne marketing volume of last year,” said Surana.

Key highlights

Marketing volumes were 38.44 million metric tons vs 36.7 million metric tons last year

Gross refining margin was $5.01/barrel with $0.78 as inventory gains

Have already got a number of projects under construction

Likely to have a capital expenditure of Rs 14,000 crore this year

Crude prices unpredictable due to concerns on both supply and demand

Demand side concerns are arising due to US-China tensions

Supply side concerns owing to Issues with West Asia, Venezuela, Libya

There was passenger side narrowness in demand for diesel vehicles

Demand for diesel vehicles has grown 3 percent last year

Expect demand for diesel vehicles in the 2.5-3.5 percent range
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