HPCL Q3 Results Review - Marketing Profitability Outlook Improves: Prabhudas Lilladher

Prabhudas Lilladher Report

Hindustan Petroleum Corporation Ltd. reported better than expected Q3 results with Ebitda of Rs 16.7 billion (Q2: loss of Rs 14.9 billion; our estimate: loss of Rs 37.9 billion) and profit after tax of Rs 1.7 billion (Q2: loss of Rs 21.7 billion; our estimate: loss of Rs 48.4 billion), due to better than expected marketing profitability.

Improving marketing environment along with strong gross refining margins will drive near term earning given-

1. improved marketing margin (Rs 1.8/litre) post sharp correction in international diesel prices to ~$110 (recent peak of $170/barrel of oil)

2. firm refining product spreads due to ban on import of Russian oils,

3. range bound oil prices due to global recessionary pressure and high interest rates, despite increased demand from China.

We believe HPCL along with other oil marketing companies, are all well placed to benefit from improving marketing situation and healthy refining profitability.

Click on the attachment to read the full report:

More Research Reports On HPCL's Q3 FY23 Results Review

• Beat In Estimates, Led By Higher-Than-Expected Gross Refining Margin: Motilal Oswal

• Earnings Improve On Better Marketing Margins: Yes Securities

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.