Hindustan Petroleum Corporation Limited (HPCL) successfully conducted its 73rd Annual General Meeting (AGM) through video conferencing, marking a significant milestone in corporate governance and shareholder engagement. The meeting saw participation from 165 shareholders, including one promoter and 164 public shareholders, out of a total of 5,11,462 shareholders, addressing several crucial matters for the company's future direction.

Key Resolutions and Appointments

The AGM saw the passage of all 13 proposed resolutions, reflecting strong shareholder support for the company's strategic decisions. Notable among these were:

1. Financial Statements Adoption: Shareholders approved the audited standalone and consolidated financial statements.

2. Dividend Declaration: A final dividend of Rs 10.50 per equity share was declared.

3. Leadership Changes: Several key appointments were made:

   • Vikas Kaushal was appointed as Chairman & Managing Director.
   • Bechan Lal, Sharda Singh Kharwar, Vivekananda Biswal, and Abhay Sharma were appointed as Independent Directors.

4. Director Reappointments: Rajneesh Narang and Amit Garg were reappointed as directors, with approval rates of 90.48% and 89.48% respectively.

5. Auditor Appointments: Upendra Shukla & Associates was appointed as the Secretarial Auditor, and the remuneration for cost auditors was approved.

Material Related Party Transactions

The AGM also approved material related party transactions with two key entities:

1. HPCL-Mittal Energy Limited (HMEL)
2. Hindustan Colas Private Limited (HINCOL)

Shareholder Participation and Voting

The meeting demonstrated strong shareholder engagement, with voting conducted through remote e-voting and e-voting during the AGM. The company ensured transparency by appointing a scrutinizer to oversee the voting process.

Corporate Governance Highlight

HPCL's decision to conduct the AGM through video conferencing for the sixth consecutive year, in line with Ministry of Corporate Affairs guidelines, showcases the company's adaptability to changing corporate governance norms and its commitment to shareholder accessibility.

Looking Ahead

With these resolutions passed and new leadership in place, HPCL appears poised for its next phase of growth. The approval of material related party transactions and the appointment of new independent directors suggest a focus on strategic partnerships and strengthened corporate governance.

Hindustan Petroleum Corporation Limited (HPCL), one of India's leading oil and gas companies, has stated that potential US secondary sanctions deterring Russian crude purchases would not significantly impact the company's earnings.

Limited Exposure to Russian Crude

HPCL Chairman Vikas Kaushal revealed that Russian crude represented only 13% of HPCL's refining portfolio in the April-June quarter. This percentage has decreased from the previous year due to economic rather than geopolitical reasons.

US Sanctions and Tariffs

The United States has imposed 25% tariffs on India for buying Russian crude, effective August 27, adding to previously announced 25% tariffs. Despite these measures, HPCL maintains that the impact on their earnings would be minimal.

No Government Directives

HPCL has received no government guidance to avoid Russian oil and remains free to make economically-driven purchasing decisions. This aligns with the company's earlier statement during an investor conference call, where they confirmed no specific government orders concerning Russian oil purchases.

Refinery Operations

The company primarily used Russian oil at its Visakhapatnam refinery but has recently found other crude sources more attractive. This shift is based on economic considerations rather than geopolitical pressures.

Potential Impact on Indian Refiners

An analyst noted that Indian refiners could potentially lose $1.00 per barrel in gross refining margins due to the sanctions. However, HPCL is expected to be the least impacted among Indian refiners due to its minimal refining portfolio compared to its marketing volume.

Financial Performance

While addressing the Russian oil situation, HPCL also reported its recent financial performance for the quarter ended June 30:

Operational Highlights

The company shared key operational data for the quarter:

As global energy markets continue to evolve, HPCL's approach to oil procurement and its overall business strategy will likely remain of interest to investors and industry observers alike.