Hindustan Petroleum Corporation Limited · NSE:HINDPETRO
Hindustan Petroleum — Investor Presentation (May 2023)
37 slides from Hindustan Petroleum's investor presentation, May 30, 2023
Slide 1: Investor Presentation
Questions Hindustan Petroleum Corporation Limited Investor Presentation 30th May, 2023 Mumbai
Slide 2: Plan of Presentation
Plan of Presentation Corporate Overview Business Overview Plan of Presentation Performance Overview Future Plans 2 2
Slide 3: Corporate Overview
Corporate Overview
Slide 4: Integrated Refining & Marketing Company
Integrated Refining & Marketing Company Shareholding Profile as of 31st March, 2023 7.97% 2.17% ONGC 7.54% FPIs 13.06% Mutual Funds Non- Institution s Insurance Cos. 14.36% 54.90% • Maharatna Company since 2019 • Operating for 100+years Strong presence in India in Oil & Gas Sector • Pan India presen
Slide 5: 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 1952 of 165 TMTPA ESSO and Stanvac’s name Lu
Slide 6: Core Strengths
Core Strengths Strategically Located Assets World Class Assets • Refineries in East, West, South and North of Country • Refineries connected with cross country pipeline Mumbai • Over 80% product evacuation from refineries through cross country pipelines Refinery • Distribution facilities across coun
Slide 7: Global Recognitions
Global Recognitions Global Ratings At par with India's sovereign rating Baa3 (Stable) BBB- (Stable) Recipient of dun & bradstreet’s ‘PSU Awards’ 2022 in Digital Transformation category 7 7
Slide 8: Business Overview
Business Overview
Slide 9: Diversified Portfolio
Diversified Portfolio Marketing Pipelines 42.2 MMT (domestic) 5,132 Kms JVs & Refining Subsidiaries 17.8 MMTPA (*HPCL Capacity) 11.3 MMTPA (JV Capacity) 19 Numbers E&P Exports Along with JVs/ 1.2 MMT subsidiary Renewables R&D Wind & Solar 53 Products & 185 MW Technologies All figures are as of March
Slide 10: Strategically Located Refineries
Strategically Located Refineries Refining Capacity in MMTPA Mumbai 9.5 Visakhapatnam 8.3* HMEL Total HPCL 17.8 Refinery (JVC) HMEL (JVC) 11.3 Total (Marketing Rights) 29.1 *Under Capacity Expansion to 15 MMTPA progressively Mumbai Visakh Refinery Refinery Lube Refinery (Mumbai) : 428 TMTPA Mangalore
Slide 11: Key Features of Refineries
Key Features of Refineries Mumbai Refinery • Commissioned in 1954 with crude processing capacity of 1.25 MMTPA, currently augmented to 9.5 MMTPA capacity • Upgraded to produce BS –VI fuel grade • Diverse product portfolio • Largest Lube Refinery accounting ~ 40% of India’s total LOBS production • 80
Slide 12: Pan India Network
Pan India Network Distribution Network Cross country POL POL Depots LPG Plants Aviation Service Lube blending pipeline Terminals Facilities Plant 17 43 72 55 54 6 Customer Touch Points Industrial Lube Door to Door EV Charging Retail Outlets LPG Distributors CNG Dispensing Distributors Delivery Vehic
Slide 13: Cross Country Pipeline Network
Cross Country Pipeline Network LPG Pipeline Liquid POL Pipeline Barwala–Hisar Ramanmandi- Bathinda P/L *17 cross country Bahadurgargh- Trikikalan P/L Pipelines with total Ramanmandi – Bahadurgarh P/L Bathinda Refinery Pipeline network of Bahadurgarh Delhi 5,132 kms Awa – Salawas P/L Ajmer Kanpur Mun
Slide 14: Focus on Research and Development
Focus on Research and Development R&D Achievements New Technologies / Products 53 demonstrated Patents applied 443 Total Patents granted 160 R&D Technology and Products Technology / Products : Under areas of Fuel Additives, Catalysts, Bio products, Process chemicals, Hygiene Products, Specialty Prod
Slide 15: Digitally Enabled Operations
Digitally Enabled Operations Refineries Pipelines Pipeline Intrusion Detection system (PIDS) Pipeline Reliability & PDMS DCS Maximo Field Security - Inventory Management Maintenance Inputs Batch P/L Integrity Process History data base Scheduling by Mgmt. Software Software (PIMS) Supply Locations Cen
Slide 16: Emphasis on Talent Management
Emphasis on Talent Management Induction 2010 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 16 16
Slide 17: Joint Ventures and Subsidiaries
Joint Ventures and Subsidiaries 17 17
Slide 18: CSR: Touching Lives Every Way
CSR : Touching Lives Every Way CSR : Touching lives Every Way ~30 lakh lives benefitted since implementation of CSR Rules, 2014 18 18
Slide 19: Performance Overview
Performance Overview
Slide 20: Quick Snapshot: FY 2022-23
Quick Snapshot : FY 2022-23 CSR : Touching lives Every Way Highest Revenue Highest Crude from Operations Thruput Rs. 4,66,192 Crore 19.09 MMT Highest Pipeline Highest Market Sales Thruput 43.45 MMT 23.25 MMT Net Loss Refinery GRM Rs. 8,974 Crore US$ 12.09 / bbl 20 20
Slide 21: Quick Snapshot: Q4 2022-23
Quick Snapshot : Q4 2022-23 Nine Year High Quarterly Standalone Profit at Rs. 3,223 Crore - Consolidated Net Profit Rs. 3,608 Crore Quarterly Market Sales of 11.1 MMT - Growth of 4.1% Highest Ever Quarterly Refinery Thruput of 4.96 MMT - 113% Refinery Capacity Utilization Refinery GRM US$ 14.01 / bb
Slide 22: Return to Stakeholders
Return to Stakeholders Return to shareholders Market Cap (Rs. Crore)* Share buy-back Program First & only PSU to do Bonus share Issue Open Market buy-back 2 33,591 47.99% increase Sep 2016 (2:1) from 28th Oct 20 254.25 171.80 186.75 9,654 6 CAGR 28/10/20 04/11/20 14/05/21 July 2017 (1:2) 13.3% HPCL
Slide 23: Investments during last 5 years
Strengthening of Infrastructure across value chain Area of Value Chain Investment (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: CAPEX - Investing for the Future
CAPEX- Investing for the Future 19,000 4.00 Capex (Rs. Crore) 17,000 16,772 3.50 16,085 Long Term Debt-Equity Ratio 15,000 14,630 3.00 14,043 13,000 12,661 2.50 11,000 1.80 2.00 9,000 1.50 7,023 7,000 1.00 0.51 5,000 0.50 3,000 - Mar 17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Mar 23 Value Cr
Slide 25: Future Plans
Future Plans
Slide 26: Enhancement of Refining & Marketing Infrastructure
Enhancement of Refining & Marketing Infrastructure Sectoral Overview – Oil HPCL -Capacity expansion to meet growing demand Oil Demand by Scenario: India (Unit : Million Barrels per Day) 6.7 5.9 4.7 • New 9 MMTPA Refinery and Petrochemical project at 2021 2030 Barmer in Rajasthan STEPS APS • Enhancin
Slide 27: Pursue growth opportunities in Natural Gas
Pursue growth opportunities in Natural Gas Sectoral Overview – Natural Gas HPCL Participation in entire value chain Natural Gas Demand by Scenario: India (Unit : Billion Cubic Meters) 115 110 66 2021 2030 • 5 MMTPA LNG Import Terminal at Chhara Port in STEPS APS Gujarat Source: World Energy Outlook
Slide 28: Foraying into Petrochemicals
Foraying into Petrochemicals Sectoral Overview -*Petchem HPCL Capacity Building & Marketing Plans Petchem Demand : India (Unit : Million Metric Tonnes) 69 44 2021-22 2029-30 • 9 MMTPA Refinery and Petrochemical Capacity under *Petrochemicals considered : Polymers ( polyethylene/poly propylene/PVC),
Slide 29: Expanding footprints in Alternate Energy
Expanding footprints in Alternate Energy Sectoral Overview - Renewables HPCL – Participation in Emerging Opportunities Renewables Generation : India (Unit : TWh) 956 990 337 • Expanding footprints in Renewables 2021 2030 • Ethanol blending (E20) targeted to reach 20% by 2025 STEPS APS • Stabilisatio
Slide 30: Thrust on R&D, Innovation and Digital Technologies
Thrust on R&D, Innovation and Digital Technologies Own State-of-the Art R&D Centre Leveraging Innovation Leveraging Digital Technologies • Digital strategy in place • Curating future technologies • ‘Idea Junction’ to capture • Digital initiatives are under • Working towards developing 22 Innovative
Slide 31: HPCL Net Zero Plan: Development of Roadmap
HPCL Net Zero Plan: Development of Roadmap HPCL Net Zero plan - Announcement on 31st Jan 2022 • HPCL is committed to conduct business with an objective of preserving the environment and contributing to sustainable development. • Plans underway to achieve Net zero Scope 1 & 2 emissions by 2040. 31 31
Slide 32: Continued ESG Focus
Continued ESG Focus Environment Management Systems (EMS) by major Locations Emission monitoring Systems Ethanol blending of 10.6% in FY 2022-23 Over 2GW of renewable energy in planning Sustainability agenda Environment aligned with UN SDG 3.81 crore LPG Cylinders under PMGKY Support to s
Slide 33: Basket of projects worth ~Rs. 1.65 Lakh Crore
Projects towards meeting energy needs, providing customer choices & future proofing Refining • Visakh Refinery Modernisation (15 MMTPA) • 1.1 MMTPA HSFO at VR ~1,10,000 • 9 MMTPA Refinery & Petchem, HRRL • SPM at VR, bitumen evacuation line MR • CFBC Boiler at VR and COT in MR • Lube HCU,SDA at MR &
Slide 34: Robust Capital Expenditure Plans
Robust Capital Expenditure Plans (Rs. Crore) Capex 2023-24 Business Segment 2023-24 19% 36% Refinery with R&D 5,000 Marketing Infrastructure 4,500 6% Natural Gas 1,000 Bio-Fuels & Renewables 800 7% Equity investments in 32% 2,700 JVC/Subsidiaries Refinery with R&D Total 14,000 Marketing Infrastructu
Slide 35: 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 36: 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 37: Thank You
Questions Thank You
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