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HPCL nods to 2:1 bonus issue; to form JV with France's Totalfina for LPG storage

The shareholders of Hindustan Petroleum Corporation Limited have approved issue of bonus shares in the ratio of one bonus share for every two shares held by the shareholders.

HPCL's 47th annual general meeting was held in Bombay today.

The meeting also approved an equity dividend of 110 per cent which would involve a pay out of Rs 2.76 billion for the company.

Other matters that were approved in the AGM included amendments to the Memorandum of Association and the Articles of Association enabling provisions for buyback of shares, complying with the Depositories Act, nomination facilities for shareholders.

HPCL's chairman H L Zutshi told shareholders that the company is targeting sales of Rs 300 billion for the current financial year ending March 2000.

HPCL had posted net sales of Rs 239.1 billion for the year ended March 1999.

HPCL has posted the highest ever profit-after-tax of Rs 9.01 billion as compared to Rs 7.01 billion the previous year, representing an increase of 28.54 per cent.

The internal resource generated is Rs 10.29 billion as compared to Rs 9.71 billion the previous year.

The expansion of its Visakhapatnam refinery in Andhra Pradesh from 4.5 million metric tonnes per annum to 7.5 MMTPA is expected to be completed by end of the month. Two hydro-desulphurisation of diesel projects costing Rs 15.52 billion for meeting the revised specifications of sulphur content are nearing completion at both Bombay and Visakhapatnam refineries.

The corporation's joint venture company, Mangalore Refinery and Petrochemicals Limited, is expanding its refinery from 3 MMPTA to 9 MMTPA at a cost of Rs 34.90 billion. The expanded plant is expected to be commissioned before November as scheduled.

The corporation has entered into several new joint ventures recently. These include Prize Petroleum Company Limited, for foray into exploration and production of crude oil, and Petronet MHB Limited for setting up a product pipeline from Mangalore to Bangalore. The other joint venture being set up is for construction and operation of LPG cavern storage facility at Visakhapatnam. Totalfina of France is the project partner.

The corporation has also received the government approval for setting up a 9 MMTPA grassroot refinery at Bhatinda, in Punjab. The project is estimated to cost Rs 98.06 billion and will be set up by a joint venture company.

Advance work in respect of the project has begun.

About the company's planned storage facility for liquefied petroleum gas in Visakhapatnam, Zutshi said, "We have finalised details of the underground storage facility. The joint venture agreement with Totalfina will be signed shortly," he added.

Both the partners will have equal equity stake in South Asia LPG Company Private Limited, the proposed joint venture company.

UNI

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