Hindustan Oil Exploration Company Limited (HOEC) Q3 FY 2024-25 Earnings Report

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Chennai, India | February 4, 2025 – Hindustan Oil Exploration Company Limited (NSE: HINDOILEXP, BSE: 500186) has reported a strong financial and operational performance for the quarter ending December 31, 2024, driven by increased production and strategic expansion across key assets.

Key Financial Highlights (Consolidated)

(₹ in Crores unless stated otherwise)
ParticularsQ3 FY25Q2 FY25YoY Change
Revenue from Operations₹146.52 Cr₹94.81 Cr+54.6%
Total Revenue₹150.19 Cr₹99.58 Cr+50.9%
EBITDA (Excl. Exceptional Items)₹52.46 Cr₹13.41 Cr+291.3%
Net Profit₹43.31 Cr₹10.81 Cr+300.8%
EPS (Basic & Diluted)₹3.28₹0.82+300%
  • Revenue surged significantly due to higher production and improved price realizations.
  • Net profit witnessed a sharp increase, supported by operational efficiencies and cost management.
  • EBITDA margins expanded, reflecting strong asset utilization and optimized operational costs.

Operational Performance

Production Overview

  • Total Gross Production: 6,677 BOEPD in Q3 FY25, up from 5,230 BOEPD in Q2 FY25.
  • Net Production: 2,619 BOEPD, reflecting a 39% QoQ growth.
FieldQ3 FY25 ProductionQ2 FY25 ProductionPrice Realization (Q3 FY25)
Dirok Field (Gas & Condensate)17.79 mmscfd Gas & 304 bpd Condensate15.03 mmscfd Gas & 237 bpd Condensate$8.25/mmbtu
B-80 Field (Gas & Oil)7.52 mmscfd Gas & 957 bpd Oil4.14 mmscfd Gas & 640 bpd Oil$10.78/mmbtu
  • The Dirok field reported a notable increase in production, with additional gas reserves confirmed from unexplored zones.
  • The B-80 field saw a significant rise in production following maintenance and infrastructure upgrades.

Key Developments & Strategic Initiatives

Mumbai Offshore – B-80

  • Production fully restored with both wells operational.
  • Gas pricing revised, with part of gas sold at 12.05% of Brent.
  • Bid submitted for Block B-15 in the Special DSF Round 2024, which includes two discovered fields spanning 332.4 sq. km.

Dirok Field Expansion

  • Potential to increase production to 55 mmscfd.
  • Completion of workover operations led to additional reserves.
  • North-East Gas Grid is expected to be operational by FY 25-26, removing potential demand constraints.

PY-1 Redevelopment

  • Production Sharing Contract extended till October 2030.
  • Seismic reprocessing and well assessments are complete, with Petro Vietnam reviewing the geological model.
  • Regulatory clearance for further drilling is in progress.

Kharsang Expansion

  • Oil production recorded at 358 bopd in Q3 FY25.
  • Environmental clearance obtained for 40 development wells and 5 exploration wells.
  • Drilling contracts finalized for 9 new wells.

Cambay Basin Development

  • Environmental clearance granted for drilling four new wells.
  • Workovers in North Balol and Palej planned to enhance gas production.
  • Palej PSC extension linked to artificial lift projects.

Capital Market Performance

  • Market Price (Dec 31, 2024): ₹231.25
  • 52-Week High/Low: ₹293.60 / ₹156.85
  • Market Capitalization: ₹24,200.52 Mn
HOEC’s stock has demonstrated resilience, benefiting from strong revenue growth, operational efficiency, and strategic asset expansion.

Strategic Outlook

  • Accelerated production growth across offshore and onshore assets.
  • Increased drilling activities with ongoing bids for new discoveries.
  • Infrastructure development to support long-term sustainability.
  • Leveraging operational synergies to optimize costs and maximize production.

Management Commentary

"Our focus remains on delivering strong operational performance and sustainable growth. The ongoing expansion in Mumbai Offshore, Dirok, and the Cambay Basin will drive long-term value for stakeholders while ensuring responsible resource utilization."HOEC Management

Conclusion

Hindustan Oil Exploration Company (HOEC) has delivered robust revenue growth, improved profitability, and expanded its asset portfolio in Q3 FY25. With strategic investments in production enhancement, drilling, and offshore exploration, the company is well-positioned for continued strong financial and operational performance.
 
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