Analyst Concall
BPCL sees FY26 capex INR 180 bln, Bina plant ready by FY28
This story was originally published at 15:23 IST on 28 October 2024
Register to read our real-time news.Informist, Monday, Oct. 28, 2024
Please click here to read all liners published on this story
--BPCL:Invested INR 180 bln in Mozambique, to spend INR 200 bln more in 5 yr
--BPCL: Hope to commission Bina project in FY28
--BPCL: Expect capex of INR 180 bln in FY26
--BPCL: Expect 15?GR volume growth in city gas distribution
--BPCL: Short on refining capacity, working to identify new refinery project
--CONTEXT: Comments by BPCL's mgmt in post-earnings analyst concall
--BPCL: Expect to add 150 CNG stations in FY25, 800 in 2-3 years
AHMEDABAD - Bharat Petroleum Corp. Ltd. expects to spend INR 180 billion in capital expenditure in 2025-26 (Apr-Mar), the company's management said in a post-earnings analyst conference call Monday. It also plans to commission the expanded capacity of the Bina oil refinery, located in Madhya Pradesh, by FY28.
The country's second-largest state-owned oil marketing company – Bharat Petroleum Corp.--is engaged in refining crude oil, marketing of petroleum products and has a presence in the downstream and upstream sectors of the oil and gas industry.
The oil marketing company has announced plans to invest INR 1.7 trillion over the next five years, including INR 750 billion for the refineries and petrochemicals business, INR 100 billion for green energy, INR 200 billion for marketing, INR 250 billion for city gas distribution and INR 320 billion for upstream projects.
Bharat Petroleum Corp.'s refineries in Mumbai, Kochi and Bina have a combined refining capacity of about 35.3 million tonnes per annum. BPCL's crude oil refinery throughput was 10.28 million tonnes in Jul-Sept. One of the key projects for the state-owned oil company as part of its capital expenditure plan to expand refining and petrochemicals capacity is the Bina Oil Refinery for INR 500 billion. The management said that nearly 6.3% of the work at the Bina refinery project is complete, and it has also ordered most of the equipment for its petrochemicals expansion projects. They said they expect to commission the project with expanded capacity by FY28.
Talking of the Mozambique project, the company's management said it had so far spent nearly INR 180 billion on this project and would need to spend another INR 200 billion over the coming five years. BPRL Ventures Mozambique B.V., a subsidiary of Bharat Petroleum Corp. Ltd., Oil India Ltd. and Oil & Natural Gas Corp. Ltd., jointly own a 30% stake in TotalEnergies-backed liquefied natural gas project in Mozambique. The project is under force majeure since 2021 owing to political disturbances in the region.
Asked about tie-ups for refining projects, Bharat Petroleum Corp.'s management said they were seemingly short on refining capacity and were in talks with multiple entities. They said it was a "work in progress", and was working on identifying projects to add new refining capacities.
On its plans for compressed natural gas, the management said it hopes to add 150 compressed natural gas stations in the second half of FY25, and nearly 800 more over the coming two-three years. As of Sept. 30, it had 2,120 CNG stations across the country. Going forward, the management hopes it will continue to achieve a 15% compounded annual growth rate in CNG volumes every year.
The company that had announced plans to spend nearly 100 billion on green energy said they hope to spend nearly INR 30 billion on its compressed biogas projects. Bharat Petroleum Corp. reportedly plans to set up 200-300 compressed biogas projects of 1.3 million tonnes per annum capacity and 2 billion tonnes per annum of biomass-based hydrogen projects by 2040.
At 1337 IST, shares of Bharat Petroleum Corp. traded 1.11% higher at INR 309.70 rupees.
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Sunil Raghu and Akshay Johnson
Edited by Tanima Banerjee
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000 /+91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2024. All rights reserved.
To read more please subscribe
Share this Story:
