Q1 2026 Hindustan Oil Exploration Company Ltd Earnings Call Transcript
Key Points
- Hindustan Oil Exploration Co Ltd (BOM:500186) has secured environmental clearance for drilling 40 development wells and three exploration wells in the Kharsang block, with four wells already drilled and contributing to increased production.
- The company reported an increase in production from the Kharsang block, with an average production of 450 barrels per day in Q1 FY26, up from 351 barrels per day in the previous quarter.
- Dirok gas sales increased to 20 million standard cubic feet per day in the current quarter, compared to 15 million standard cubic feet per day in the previous quarter, indicating a rise in demand.
- The company has a comprehensive drilling plan for both onshore and offshore assets, aiming to drill a total of 18 shallow wells and three deep wells in Kharsang, and 10 offshore wells, which is expected to enhance production capacity.
- Hindustan Oil Exploration Co Ltd (BOM:500186) has raised a debt capital of INR250 crore to support its capital expenditure, demonstrating financial planning to support its growth initiatives.
- Production in the B-80 block was disrupted due to monsoon conditions, affecting the company's ability to ensure continuous production.
- The average gas price realized in the current quarter decreased to 11.4 per MMBtu from 12.09 per MMBtu in the previous quarter, impacting revenue.
- The company faces demand constraints due to limited connectivity to the national gas grid, which is expected to be resolved only by the end of FY26.
- There is uncertainty regarding the timeline for the Northeast gas grid connectivity, which could affect the company's ability to ramp up production and sales.
- The company has a significant inventory of 410,000 barrels of oil that is yet to be auctioned, which could impact cash flow if not sold promptly.
Ladies and gentlemen, good day, and welcome to the Hindustan Oil Exploration Company Limited Q1 FY26 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Nachiket Kale from Ernst & Young Investor Relations. Thank you, and over to you, sir.
Thanks. Good morning, everyone, and a very warm welcome to all of you. I'm Nachiket Kale from EY IR. On behalf of the company and the management, I would like to thank you all for participating in the company's earnings conference call for Q1 FY26. The company has published its results and uploaded the investor presentation on the exchanges.
I hope everyone had a chance to go through the same.
Before we start, a disclaimer. Some of the statements made in today's earnings con call may be forward-looking in nature. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from those anticipated. Such
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