Hindustan Petroleum Corporation Limited · NSE:HINDPETRO
Hindustan Petroleum — FY2024 Earnings Presentation
52 slides from Hindustan Petroleum's earnings presentation, May 10, 2024
Slide 1: Hindustan Petroleum Corporation Limited Investor Presentation
Hindustan Petroleum Corporation Limited Investor Presentation Mumbai 10th May, 2024
Slide 2: Plan of Presentation
Plan of Presentation HPCL at a Glance Business Overview Plan of . Performance Overview Presentation Future Plans ` Net Zero 2
Slide 3: HPCL at a Glance
HPCL at a Glance
Slide 4: HPCL at a Glance
HPCL at a Glance Operating in India Maharatna for 100+ Years Company Owns & Operates 2nd largest Retail Largest Lube Network Holder Refinery In India 2nd largest Cross Country Product 2nd largest LPG Pipeline Network Marketer State-of-the-art Enduring R&D Setup Relationship with Stakeholders 4
Slide 5: Shareholder Profile and strong presence in Indian O&G Sector
Shareholder Profile and strong presence in Indian O&G Sector Shareholding Profile as of 31st March, 2024 Strong presence in Indian Oil & Gas Sector 9.13% ONGC 6.71% 13.44% Refining Capacity in India* FPIs 15.46% Mutual Domestic Market Share in Funds 20.29% Petroleum Products Insurance Cos. 13.80% 54
Slide 6: Legacy of over 100 years
Legacy of over 100 years 2019 2018 1997 Maharatna* 1978 Status to GoI transfers HPCL 1974 its 51.11% Navratna equity share to 1969 Status to ONGC Merger of HPCL 1962 Caltex Formation of undertaking HPCL by in India into 1955 HPCL Commissioning Amalgamating of 165 TMTPA ESSO and 1952 Stanvac’s name L
Slide 7: Business Overview
Business Overview
Slide 8: Diversified Portfolio
Diversified Portfolio Market Sales Pipelines 46.8 MMT 5,134 Kms Refining JVs & 23.2 MMTPA (HPCL Capacity) Subsidiaries 11.3 MMTPA (JV Capacity) 20 Numbers Natural Gas R&D End-to-End Solutions 58 Products & Technologies Renewables Wind & Solar - 208 MW Visakh Refinery under capacity expansion to 15 M
Slide 9: Refinery Infrastructure
Refinery Infrastructure Refining Capacity in MMTPA HMEL Mumbai 9.5 Refinery (JVC) *Visakhapatnam 13.7 HRRL Total HPCL 23.2 Refinery (JVC) HMEL (JVC) 11.3 Total (marketing rights) 34.5 Mumbai Visakh Refinery Refinery Lube Refinery (Mumbai) : 428 TMTPA Mangalore Refinery (Associate Company) • Coastal
Slide 10: Cross Country Pipeline Network
Cross Country Pipeline Network LPG Pipeline Barwala–Hisar Liquid POL Pipeline Ramanmandi- Bathinda P/L *17 cross country Bahadurgargh- Trikikalan P/L Ramanmandi – Bahadurgarh P/L Pipelines with total Bathinda Refinery Pipeline network of Awa – Salawas P/L Bahadurgarh Delhi 5,134 km Ajmer Kanpur Mund
Slide 11: Supply Infrastructure
Supply Infrastructure Terminals/TOPs/Depots Lube Depots LPG Plants ASFs 81 34 56 55 Lube Blending Plants Description Capacity Petroleum Oil Lubes (POL)Tankage 3.3 MMT LPG bottling capacity 6.6 MMTPA Lube blending capacity 340 TMTPA QC Labs 48 Nos. Strategically located state-of-art Infrastructure 5
Slide 12: Customer Touchpoints
Customer Touchpoints Retail Outlets 22,022 LPG Distributorships 6,349 SKO / LDO Dealerships 1,638 Lube Distributors (Ind & Auto) 474 Mobile Dispensers 817 CNG facilities at ROs 1,690 EV Charging facilities at ROs 3,603 LPG Consumers 96 Million Daily Customer Interactions 25 Million As on 31.03.2024
Slide 13: Focus on Research and Development
Focus on Research and Development R&D Achievements New Technologies / Products demonstrated 58 Patents applied 547 Total Patents granted 210 R&D Technologies and Products Technologies: H2 PSA Technology, HP-HiGAS Technology, SprayMax Feed Nozzle etc. Products: Fuel Additives, Catalysts, Bio Products
Slide 14: HPGRDC Research Labs
HPGRDC Research Labs Phase-I Crude Evaluation & Process Modelling Hydro-processing Fuels Research & Simulation CoE Nano- Catalysis Bioprocess Technology Analytical and Standard testing FCC/RFCC Chemical Synthesis Phase-II Petrochemicals & Centre of Battery Engine Polymers Excellence Lubes Residue Co
Slide 15: Joint Ventures and Subsidiaries
Joint Ventures and Subsidiaries Oil Refining Oil supply Infra and Marketing Joint Venture in Natural Gas Infrastructure & Marketing Subsidiaries Biofuels Natural Upstream Overseas Renewables Gas Marketing GITL- GSPL INDIA TRANSCO LIMITED GIGL - GSPL INDIA GASNET LIMITED Growth through Partnerships H
Slide 16: Ratings and Accolades
Ratings and Accolades At par with India’s Sovereign Rating Recognitions and Accolades Recipient of FIPI’s Company of the Year in Baa3 (Stable) Excellence in Human Resource Management 2022 SCOPE Eminence Award for HR Management, BBB- (Stable) Digital Transformation & Effective implementation of RTI A
Slide 17: Emphasis on Talent Management
Emphasis on Talent Management Induction Capability Building Structured Induction process Behavioural / Functional to Learn, Grow and Lead and Technical training SAMAVESH Recognition Leadership Rewarding Values for Building Strong driving Performance Leadership Pipeline 17
Slide 18: CSR : Touching Lives Every Way
CSR : Touching Lives Every Way CSR : Touching lives Every Way HPCL’s CSR focus areas are guided by National Policies and Priorities for the Welfare of Children, Women, and the Weaker Section of the society ~44 lakh lives benefitted since implementation of CSR Rules, 2014 18
Slide 19: Performance Overview
Performance Overview
Slide 20: Performance Highlights: FY 2023-24
Performance Highlights: FY 2023-24 Record Consolidated Net Profit at Rs. 16,015 Cr Highest Ever Standalone Net Profit at Rs. 14,694 Cr Recorded Highest ever Market Sales of 46.8 MMT - Sales Volume Growth of 7.8% ; Market Share gain of 47 bps vis-à-vis PSU counterparts Highest Ever Refinery Thruput o
Slide 21: Strong Refining & Marketing Performance
Strong Refining & Marketing Performance 1.4 115% 113% 112% $23.69 Utilisation (%) 112% 20 103% 102% 101% 105% 1.2 1 $17.15 74% 13.03 12.74 12.65 $14.82 15 12.69 0.8 $13.08 9.80 9.64 9.29 $10.35 8.41 $9.20 $8.12 Throughput (MMT) 0.6 10 $7.60 $6.92 5.56 0.4 5 0.2 0 0 1 2 3 4 5 6 7 8 9 10 11 Mumbai Viz
Slide 22: Infrastructure Capability enhancement in last 5 Years
Infrastructure Capability enhancement in last 5 Years Refining Infrastructure Refining Capacity (MMTPA)* Customer Touchpoints Infrastructure 23.2 15.8 Mar 19 Mar 24 Supply & Distribution POL Terminals & LPG Plant (Nos.) Retail Outlet (Nos.) LPG Distributors (Nos.) 100 22022 6110 6349 93 16476 Mar 19
Slide 23: Strengthening of Infrastructure across value chain
Strengthening of Infrastructure across value chain Investment Area of Value Chain (Rs. Cr) Refining Capacity Expansions 31,000 Expansion of Pipeline Network 8,500 LPG Plants / POL Depots / Capacity Augmentations 5,800 Expansion of CGD Network 2,000 Enhancing Biofuels & Renewable capacities 1,000 Exp
Slide 24: Return to Stakeholders
Return to Stakeholders Return to Shareholders Market Cap (Rs. Cr)* Share buy-back Program Number of Shares Before 2016 Bonus 4 ₹ 67,493 First & only PSU to do Open Sep 2016 (2:1) Market buy-back Post 2016 Bonus 12 CAGR 47.67% increase from 28th Oct 20 20.5% 254 July 2017 (1:2) 172 187 18 ₹ 10,489 Po
Slide 25: Key Financial Performance Parameters
Key Financial Performance Parameters 2.9 3.1 3.1 21.3% 2.80 19.7% 19.4% 2.6 2.7 17.6% 10.8% 2.2 6.9% -10.7% 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Return on Capital Employed (ROCE%) Asset Turnover Ratio (In Times) 1.80 120 103.
Slide 26: Key Financial Performance Parameters
Key Financial Performance Parameters 3.00 20000 16,085 16,772 18000 27,221 2.50 14,630 14,043 14,342 16000 2.00 12,661 14000 18,714 12000 1.80 12,521 13,077 13,146 1.50 7,023 10000 8000 6,962 1.00 0.90 1.06 0.84 0.70 6000 4000 0.50 0.43 0.48 -5,453 2000 - 0 2017-18 2018-19 2019-20 2020-21 2021-22 20
Slide 27: Future Plans
Future Plans
Slide 28: Future Plans: Focus Areas
Future Plans: Focus Areas Existing Business Area Existing Business Adjacent Business New Business Emerging Business Area Area Area Area Businesses areas Business areas Business Business areas which are where HPCL is in opportunities where HPCL is associated or the process of which have a conducting
Slide 29: Framework: Creating Value and Delivering Growth Responsibly
Framework Goal Action Enablers Creating Value and Delivering Growth Responsibly by strengthening existing businesses, leveraging new growth engines and seizing green & emerging opportunities with focus on technology & innovation 29
Slide 30: Refinery Capacity Additions
Refinery Capacity Additions Refining Capacity 45.3 34.5 MMTPA MMTPA 2023-24 2027-28 Refinery 2023-24 2027-28 Capacity Addition Project Completed Physical Project Cost (MMTPA) (MMTPA) (MMTPA) progress (Rs. Cr) MR 9.5 9.5 0.0 MR Expansion (7.5 to 9.5 MMTPA) Commissioned 5,060 VR 13.7 15.0 1.3 Progress
Slide 31: Rajasthan Refinery (HRRL): Project Snapshot
Rajasthan Refinery (HRRL): Project Snapshot JV of HPCL (74%) and Govt. of Rajasthan (26%) Project cost : Rs. 72,937 Cr. Capacity : 9 MMTPA Location : Pachpadra, Rajasthan Configuration based on local crude from Barmer oil field / imported crude Land : ~ 4,500 acres Expenditure : ~ Rs.
Slide 32: HRRL: Uniqueness of the Project
HRRL: Uniqueness of the Project Largest PE capacity in India (2X500 KTPA) Largest PPU capacity in India (2X490 KTPA) FUEL & OTHERS PRODUCTS 26% Petrochemical Yields 14 grades of Polyethylene & 21 grades of Polypropylene State of the Art Refinery Flexibility in switching between Fuel & Petrochemicals
Slide 33: HRRL: Units, Product Slate & Expected Margins
HRRL: Units, Product Slate & Expected Margins Refinery Complex : Product Production (KTPA) CDU/VDU, MS Block Unit, Prime G, DHDT Unit, HGU, MS 995 SRU, VGO-HDT, PFCC Unit, DCU, Treating /sweetening HSD 4,035 facilities Poly Propylene (PP) 1,073 Petrochemical Complex : LLDPE 479 DFCU, PPU, Butene-1,
Slide 34: Marketing Network Expansion
Marketing Network Expansion Pipelines Terminal/Depots (No.) 6,000 5,134 KM 85 KM 81 2023-24 2027-28 2023-24 2027-28 LPG Bottling Plants (No.) Retail Outlets (No.) 60 22,022 26,000 56 2023-24 2027-28 2023-24 2027-28 34
Slide 35: Portfolio expansion in Petrochemicals & Natural Gas
Portfolio expansion in Petrochemicals & Natural Gas Petrochemical Capacity Natural Gas 4.6 LNG Import Facilities 2.2 1,387 Natural Gas Pipelines MMTPA MMTPA Nos Nos 2023-24 2027-28 CGD Network & Marketing 2.4 MMTPA Petchem Capacity in HPCL Rajasthan CNG Stations (No.) Refinery Ltd (JVC) HME
Slide 36: Natural Gas: Participation across entire value chain
Natural Gas: Participation across entire value chain Regasification Transportation Marketing LNG Import Facilities Natural Gas Pipelines CGD Network & Marketing 5 MMTPA LNG Mehsana to Bhatinda 25 GAs in 14 states Regasification (1669 Km) – GIGL(JV) HPOIL (JV) Terminal at Chhara, CNG facili
Slide 37: Snapshot: 5 MMTPA LNG Import & Regasification Facilities
Snapshot: 5 MMTPA LNG Import & Regasification Facilities LNG Import Facilities 5 MMTPA LNG Regasification Terminal at Chhara , Gujarat Executed by 100% Subsidiary of HPCL –HPLNG Limited Project Cost Rs. 4,293 Cr Current Status Mechanically completed Pipeline Connectivity at advanced stage
Slide 38: Green Opportunities - Biofuels
Green Opportunities - Biofuels Biofuel Capacity 300 12.06 TMT TMT 2023-24 2027-28 CBG Plant at Budaun- Milling Section Biofuels Projects Status Project Cost (Rs. Cr) 14 TPD Capacity CBG Plant at Budaun, UP Commissioned 133 1.6 TPD CBG Plant at Pathmeda, Rajasthan Commissioned 25 100 KLPD 2G Ethanol
Slide 39: Green Opportunities - Renewables
Green Opportunities - Renewables Renewable Capacity 208 2,400 MW MW 2023-24 2027-28 Solar Panels at HRGRDC, Bengaluru • Current power requirements to renewable sources (500MW) under Conversions • Participation in Tariff Bidding • 100% Solarisation of Retail Outlets (80% completed) • Wholly owned sub
Slide 40: Green Opportunities - Green Hydrogen
Green Opportunities - Green Hydrogen Green Hydrogen 16,870 3.5 TPA TPA 2023-24 2027-28 370 TPA Green Hydrogen Plant under construction at Visakh Refinery 12,200 TPA Green Hydrogen Project at Visakh Refinery 4,300 TPA Green Hydrogen Project at HRRL 40
Slide 41: Digital Vision & Strategy
Digital Vision & Strategy HPCL Digital Vision Digital Strategy Framework HPCL commits to leverage Digital Technologies in every aspect of our business for continuous innovation, operational excellence and new business models to provide best in class experience and value to all Stakeholders. 41
Slide 42: Leveraging Digital Technologies
Leveraging Digital Technologies Customer Experience HP Pay – Unified loyalty & Capability Building Payment Solution Digital Experience Centre Omni Channel Chatbot AR/VR Based Training Metaverse Generative AI Data driven Decisions ERP Modernization Workforce Enablement Enterprise Data Repository & An
Slide 43: Capex – HPCL and Equity in JVs/Subsidiaries
Capex – HPCL and Equity in JVs/ Subsidiaries (FY 24 to FY 28) Investment Shift • 36% Investment in Renewables, Biofuels, Natural Gas, Alternate 52% 7% 5% 6% Fuels & Net zero Capex Petroleum Non Fuel Petchem Net Zero • 12% in Non-Fuel & Petchem Investment 8% 15% 4% 3% Rs. 77,000 Crore EV/alter Renewa
Slide 44: Maturing CAPEX to help Boost Bottomline
Maturing CAPEX to help Boost Bottomline • Progressively commissioning Refinery upgrades Refinery Capacity, Thruput & Market Sales (MMT) • Leveraging Marketing infrastructure to boost 59.1 (6%) volumes 56.9 (5%) 54.8 (4%) 46.8 • Past the Peak Debt Cycle (Standalone) • Nearing Peak Debt (Consolidated)
Slide 45: Net Zero
Sy idl Net Zero
Slide 46: Net Zero Announcement
Net Zero Announcement HPCL Net Zero plan - Investment of Rs. 60,000 Announcement on 31st Crore towards Net-zero Jan 2022 plans by 2040 • HPCL is committed to conduct business with an objective of preserving the environment and contributing to sustainable development. • Plans underway to achieve Net
Slide 47: HPCL Net Zero Plan: Development of Roadmap
HPCL Net Zero Plan: Development of Roadmap HPCL – Emission Reduction Roadmap Key Levers/investment for emission reduction 9 8 7.9 Lever Investment % Reduction 7 6 5.6 Unit : MMT of Co2e 1 Efficiency Rs. 10,000 Cr 17% 5 5.0 3.6 17% 4 4.4 2 Renewables Rs. 10,000 Cr 3 2.5 2 Fuel switch 1 3 to bio gas R
Slide 48: Energy Transition Strategy Framework
Energy Transition Strategy Framework Transition to Energy Company Energy Security Decarbonisation Petrochemicals Emission Intensity Reduction R&D & Innovation ESG Focus Collaboration Capital Efficiency 48
Slide 49: Nayaa HPCL : Fresh Fast Fluid
Nayaa HPCL : Fresh Fast Fluid • Transformation to an Energy Company creating value and growth in step with society • With significant presence in • Traditional Fuels • Natural Gas • Petrochemicals • Green energy • Non Fuels 49
Slide 50: Experienced Management Team
Experienced Management Team Mr. Pushp Kumar Joshi, Chairman & Managing Director • He is a Doctorate in Human Resource Management, Post Graduate in Human Resource Management from XLRI, Jamshedpur and Bachelor of Law from Andhra University. Prior to this, he was Director, HR of the Corporation from Au
Slide 51: Disclaimer
Disclaimer The information contained in this material have been obtained from sources believed to be reliable, but no representation or warranty express or implied, is made that such information is accurate or complete and it should not be relied upon as such. The information contained in this mater
Slide 52: Thank You
Thank You