Highlights of the Concall
The throughput during quarter ended December 2008 stands at 3.22 million tonne.
The company had tailored production to optimize crack margins by upgrading the entire Naphtha to Gasoline and HSD & maximization of middle distillates at 53%.
Domestic sales of the company formed 78% of the total turnover (Rs 6551 crore) while export sales formed 22% of the total turnover (Rs 1828 crore).
Domestic sales comprised of: HPCL (37%), BPCL (28%), Indian oil (26%), Retail (4%) and others (5%). Sales for the quarter through retail outlets – Rs 241 crore (3.68% of domestic sales) due to reactivation of retail outlets
Product wise sales comprised of: HSD (57%), MS (18%), FO (13%), SKO (7%), LPG (5%), and Sulphur (0.5%).
GRM for the quarter ended December 2008 was $2.26 per barrel (Q2- $6.59 per barrel) after absorption of inventory losses.
Q3 – EBIDTA before exceptional items is Rs. 463 crore, (Q2 – Rs. 491 crore) but after absorbing inventory & forex losses (Rs.1203 crore) is negative Rs.740 crore. Q3 – PAT is negative Rs. 1230 crore, (Q2 – profit of Rs. 26 crore). Q3 Performance is impacted by steep fall in crude price by 54% (inventory loss) & depreciation in rupee by 12% (forex loss) in the quarter as compared to previous quarter.
Cracks on HSD (Gasoil)/Kero dropped due to demand concern on the background of global economic meltdown. Negative cracks on Gasoline/ Mogas resulted in overall lower gross refinery margin. Cracks on Fuel Oil shown recovery backed by strong demand by power & fertilizer sector.
The pattern of crude consumption is currently- tough crude (27%), Sour or heavy crude (42%) and Light or sweet crude (31%). Crude Diet with avg. API of 31 & avg. Acidity upto 0.54 TAN and Avg. Sulphur upto 1.55
The company signed firm arrangements with HPCL, BPCL, and IOC by way of MOU / agreements for infrastructure sharing and product offtake of 7 million tonnes (60% of refinery capacity).
Total number of retail outlets operationalised as of 31st Dec-2008 – around 1000 out of 1290 outlets and balance outlets are expected to be operationalised by March-2009
Expansion Project – Implementation
Phase – I of the Project to expand from 10.5 MMTPA to 16 MMTPA will be completed by December 2010.
Considering the impact of global macro economic development, the completion schedule of Phase – II of the Project (18 MMTPA) has been reviewed to ensure the expansion in capacity matches with global demand revival. Now, it is expected to be commissioned by December 2011.
Exploration & Production Updates
CB-ON/3:
690 barrels of oil produced from ESU field, cumulative production for this year is 3,832 barrels.
Raniganj CBM Block:
Complete Land acquisition & site preparation for 9 test wells.
Drill the remaining 9 test wells under the program.
Implement scheme for hydro fracturing & surface facilities design for all 15 test wells.
Commence developing a Term Sheet for CBM gas sales to proposed fertiliser plant in Durgapur.
Substantial work on identifying customers for gas has been done by Oil Marketing team
Madagascar Blocks:
Interpretation of 2,150 LKM of 2D seismic data completed.
Complete additional coring activity in identified block area.
Complete environment Impact Assessment (EIA) Study for Block 3103.
Ratna and R-Series
Ratna and R Series – pending before MOP & MNG for execution of PSC
Business Development:
PSC for the Block-South East Tungkal, Indonesia executed (PI: 49.5% EEPL & 50.5% GSPC)
Block MB-OSN-2005/3 was awarded under NELP VII for which the PSC was executed on 22nd Dec’08 (PI: 50% EEPL & 50% Nobel Energy)
Permits for two offshore blocks in Australia i.e. NT-P/77 & NT-P/78 awarded to EEPL
Pursue Petro Vietnam to execute offshore Block 114 PSC