Robust Output From Assam Fields Aids Hindustan Oil’s Q2 Profit
The company will triple their Assam production in the next 6 months, said P Elango.
Robust gas production from Assam fields in the first month of operations helped Hindustan Oil Exploration Company Ltd.’s net profit nearly double in the second quarter, its Managing Director P Elango told BloombergQuint in an interview.
The net profit rose 90 percent to Rs 5.57 crore as compared to the previous quarter. Revenue from operations increased 126 percent to Rs 8.4 crore during the same period. The run-rate for the next six quarters is expected to be higher that the current Rs 4 crore per month as the company ramps up “Assam production by three times over the next six months”, Elango said.
Earnings before interest, tax, depreciation and amortisation increased five-fold to Rs 7.2 crore on a sequential basis. The margin expanded to 85.7 percent from 38 percent, thanks to a fixed operating cost model and a low cost base.
On the unified tariff for gas transmission announced by Petroleum and Natural Gas Regulatory Board, Elango said HOEC will not benefit from any change in tariff. Instead, the company will benefit from the hardening of oil prices as the increase will be reflected in higher prices of gas.
Watch the full interview here: