Hindustan Petroleum Corporation Ltd (HPCL) has received clarity from the Centre to clear its $23-million oil dues to Iran.
The company’s Chairman and Managing Director MK Surana said on Friday: “We have already started the process to clear $17. 5 million of dues and we will clear the dues through Turkey-based Halkbank.”
The company is also in talks to source 2 million tonne per annum of crude from Iran through a term contract. This will be utilised by both HPCL and HPCL Mittal Energy Ltd’s refinery in Bhatinda.
HPCL alone imports 12 million tonne of crude oil annually. The last time it sourced crude from Iran was two years ago.
Surana was speaking to reporters while announcing results for the fourth quarter and FY16. For the quarter, HPCL’s net profit dropped 28.1 per cent to ₹1,553 crore, compared to ₹2,162 crore in the same quarter last year. Revenue dropped 5.4 per cent to ₹ 42,195 crore (₹ 44,615 crore). Its gross refining margin stood at $7.51 a barrel ($7.47 a barrel).
Declares dividend The HPCL board has approved a dividend of ₹16 per share. Combined with an earlier interim dividend of ₹18.5 per share, the company’s total dividend for FY16 is ₹34.5 per share.
For FY16, the company’s standalone net profit grew 41 per cent to ₹3,863 crore (₹2,733 crore) while revenue fell 13 per cent to ₹1,79,571 crore (₹2,06,626 crore). HPCL said it will invest ₹18,000 crore in increasing the capacity of its Vizag refinery to 15 million tonne from the existing 8.33 million tonne.
This expansion will require the installation of a new 6 mtpa crude oil distillation unit. The company will also spend ₹8,200 crure to raise the capacity of its Mumbai refinery to 9.5 million tonne from the current 6.5 million tonne.
Surana said the expansion plans will by synchronised with the rollout of BS-VI fuels in the country from 2020 and the investments will be made over three years. For FY17, the company’s capital expenditure will be ₹6,300 crore.
On Friday, HPCL’s shares closed 9.81 per cent higher on the BSE at ₹930.90.