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Earnings Call

Hindustan Oil Exploration Company Earnings Call: Key Takeaways

HOEC faces severe execution delays and a ₹259cr payment dispute with HPCL, stalling offshore growth. Despite optimism regarding the Northeast gas grid connection by FY27, current performance is marred by constrained off-take and operational hurdles.

Highlights
Revenue growthSharp YoY decline to ₹81cr due to lower volumes and prices.
MarginsEBITDA margins targeted at 60% post-infrastructure resolution.
Demand visibilityConstrained by pipeline infrastructure; hopes for FY27 grid connectivity.
Management confidenceDefensive tone regarding HPCL dispute and recurring project delays.

Growth

Revenue fell to ₹81cr from ₹156cr YoY due to lower Dirok off-take and BIT field underperformance.

Outlook

Targeting 3x Dirok production (45 MMSCFD) post-grid connection in FY27 and 60% EBITDA margins.

Risks

Unresolved ₹259cr HPCL receivable blocks capex; consistent drilling and production delays across B80 and Dirok fields.

Last quarter's promises, checked

Delivered

  • Mechanical completion of DNPL line → Completed (= BEAT)
  • B-80 operational days → 89 days (= BEAT)
  • Drill 8 wells in Kharsang → 8 wells drilled (= BEAT)

Partly delivered

  • Workover B-80 well in Feb → Delayed to post-monsoon (= PARTIAL)
  • Connect IGGL to Numaligarh → Mechanical done, hook-up pending (= PARTIAL)
  • Kharsang 1,000+ bopd target → 800 bopd current (= PARTIAL)

Missed

  • Resolve HPCL dispute last quarter → Still pending ₹259cr (= MISS)
  • Revenue ₹156cr YoY → ₹81cr (= MISS)
  • Dirok gas sales 14 mmscfd → 13 mmscfd (= MISS)
Source

Earnings Call filed with BSE, NSE: HINDOILEXP. Summary written with AI assistance from the document.

Read the document ↗

Hindustan Oil Exploration Company Ltd: key numbers

Share price
₹173.38
Market cap
₹2,293 Cr
Revenue (annual)
₹263.1 Cr
Net profit (annual)
₹62.75 Cr
P/E (TTM)
91.3×Sector 18.7×
Promoter holding
0.00%+0.00% QoQ
FII holding
1.88%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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