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Earnings Call

Hindustan Oil Exploration Company Earnings Call: Key Takeaways

HOEC reported challenging FY26 results with negative growth due to production declines and reversed sales to HPCL. Management remains focused on high-potential 2P reserves of 60 MMBOE and infrastructure debottlenecking.

Highlights
Revenue growthNegative due to HPCL sale reversal and lower production.
MarginsLifting cost stable at $28.4/barrel vs $28.6/barrel YoY.
Demand visibilityStrong gas shortfall in India supports Dirok production ramp-up.
Management confidenceHigh on reserve base; first call for new MD & CEO.

Growth

Financials were negative this year; standalone revenue was INR 288cr vs INR 344cr last year due to HPCL reversal.

Outlook

Targeting 11,000 boepd by June 2027 and 32,000 boepd by 2029 through 20+ planned wells and B-80/PY-1 revival.

Risks

Pipeline evacuation constraints in the East; operational delays in drilling; rig availability; volatility in global energy costs.

Last quarter's promises, checked

Delivered

  • Guided 90 operational days for B-80 → delivered 89 days (= BEAT)
  • Guided DNPL mechanical completion → delivered Completed (= BEAT)
  • Guided Kharsang 5 oil wells → delivered 5 oil wells (= BEAT)

Partly delivered

  • Guided Kharsang 9 wells → delivered 8 drilled, 9th in progress (= PARTIAL)
  • Guided Dirok revenue growth → delivered Rs. 23.78cr vs Rs. 26.57cr Prev Qtr (= MISS)

Missed

  • Guided B-80 workover by Feb 2026 → delivered Delayed to post-monsoon (= MISS)
  • Guided PY-1 drilling start April → delivered Delayed to October (= MISS)
  • Guided Dirok offtake 14 mmscfd → delivered 13 mmscfd (= MISS)
Source

Earnings Call filed with NSE, 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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