Hindustan Petroleum Corporation Ltd. on Monday approved a 'lube modernisation and bottoms upgradation' project that is to be undertaken at the Mumbai refinery, according to an exchange filing.
This project is intended to increase the production of lube oil base stocks from 475 kilotonnes per annum presently held to 764 KTP through the manufacture of Group 11+ and Group III LOBS. Which the company termed as "superior grade.".
The company said there would be an increase in bitumen production by approximately 487 KTPA with the "upgradation" of fuel oil to bitumen.
It would cost the petroleum firm approximately Rs 4,679 crore to finance the project.
The company announced a mechanical completion schedule of 36 months and three months for commissioning from the date of board approval.
Hindustan Petroleum reported a 77% rise in standalone profits in the quarter ending September 2024 but missed Bloomberg analysts' estimates by close to 70%.
The company's standalone profit stood at at Rs 631 crore in the second quarter of fiscal 2025, in comparison to Rs 356 crore in the previous quarter. Analysts had estimated that it would make Rs 2,008 crore in net profits.
The average gross refining margin for the quarter was reported to be at $4.03 per barrel, compared to $10.49 per barrel during the previous period.
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