 "Hindustan Oil Exploration sinks 19% as Q1 profit plunges 80% QoQ")
Shares of Hindustan Oil Exploration tumbled 19.4 per cent to Rs 191.3 apiece on the BSE in Wednesday’s intra-day trade as the company suffered from a twin blow of weak June quarter results and higher windfall tax on petroleum products.
At 1:10 PM, shares of the company, enagaged in oil exploration and production, were down around 17 per cent at Rs 197.5 per share as against an unchanged S&P BSE Sensex index.
During the April to June quarter (Q1) of financial year 2023-24 (FY24), the company’s standalone net profit declined 37.6 per cent year-on-year (YoY) to Rs 21.34 crore from Rs 34.21 crore posted last year. Sequentially, too, the profit plunged 80 per cent from Rs 106.97-crore profit reported in the March quarter of FY23 (Q4FY23).
While the revenue from operations climbed 65.5 per cent YoY to Rs 108.68 crore, it was down 31.5 per cent QoQ from Rs 158.78 crore.
The company’s expenses more-than-doubled to Rs 79.12 crore on a yearly basis, in the recently concluded quarter, while they increased from Rs 43.72 crore in the previous quarter.
“During the quarter ended June 30, 2023, offtake of gas from the Dirok Gas field of the company by the major customers had reduced due to the customer's plant shutdown on account of maintenance.Moreover, subsequent to the quarter ended June 30, 2023, the company made a planned shut down for the preventive maintenance of facility as well as replacement of floating hose and hawser in B80 field,” it said in a statement.
That said, on a consolidated basis, the company’s net profit declined 38 per cent QoQ to Rs 66.07 crore, but increased 104 per cent YoY.
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Revenue from operations also doubled on a yearly basis to Rs 187.14 crore, but fell sequentially from Rs 193.39 crore.
Separately, the government has hiked special additional excise duty on crude petroleum to Rs 7,100 per tonne with effect from August 15, up from Rs 4,250 per tonne.
Besides, the Special Additional Excise Duty (SAED) or duty on export of diesel has been hiked to Rs 5.50 per litre from Re 1 per litre. A duty of Rs 2 per litre will be imposed on jet fuel or ATF with effect from August 15 as against no SAED on the jet fuel.
Hindustan Oil Exploration Company Limited (HOEC) is a participant in various oil and gas blocks/fields which are in the nature of joint operation through Production Sharing Contracts (PSC) entered by the company with Government of India along with other entities. The company, at present, is engaged in the exploration development and production of hydrocarbons crude oil and natural gas in India both onshore and offshore. Apart from these, the company provides geological and geophysical services relating to the exploration of oil and natural gas and other oil field services.
Over the past three month, shares of HOEC have surged 43 per cent on the BSE as against 5.6 per cent rally in the benchmark Sensex index.