Bharat Petroleum Corporation Ltd. (BPCL) put up an excellent performance during 2012-13. Gross revenue from operations soared to 
Rs. 2,53,286 crores, while crude throughput increased to 28.55 MMT. Market sales, including exports, surged to 36.89 MMT during the year.
Both its refineries and the marketing businesses delivered exceptional results contributing to the company’s recording its highest level of profit during the year. Among the public sector oil companies, BPCL achieved the highest gross refining margin, and its growth in market sales was also the highest among the competing marketing companies.
Addressing the 60th annual general meeting of the company in Mumbai, Mr. R.K. Singh, BPCL Chairman & Managing Director, said the new refinery of Bina set up by Bharat Oman Refineries Ltd. has stabilised and is now operating at its full capacity, thereby helping BPCL meet its growing product requirements. The upstream exploration & production initiative is also progressing well and, based on the current trends, will generate substantial value to BPCL and its shareholders.
Disclosing that his company’s maiden bond offering in the international market received an overwhelming response, he said the current global environment, along with the sharp depreciation of the rupee and sluggish economic growth, will have an impact on the prospects of the oil and gas industry in the current year. Notwithstanding the difficult situation, the company remains confident about the huge opportunities available for further growth.
BPCL is indeed rapidly forging ahead with the implementation of its long-term investment plans. Work on the integrated refinery expansion project at Kochi, which will involve an outlay of Rs. 14,225 crores, is progressing well, and the project team is working towards meeting the aggressive timelines.
Similarly, in Mumbai, although there is a space constraint, work is on to upgrade some of the major machinery and equipment, which will contribute in a big way towards enhancing the efficiency of the refinery, thereby improving the refining margins and making available products that will meet the stringent specifications.
According to the Chairman, BPCL’s wholly-owned subsidiary, Bharat Petro Resources Ltd., is also making good progress in its plans to build upon the major oil and gas finds that have been reported in Mozambique and Brazil. The discoveries made in Brazil also hold great potential. The upstream initiative will bring rich rewards to the company.
Marketing of petroleum products remains the core strength of the company. This is reflected in the performance of the marketing businesses during 2012-13. All the six businesses continued to deliver strong results. At the same time, there are major challenges in the marketing arena. The rupee depreciation and the volatile prices in the international market are matters of great concern. The likely entry of private players in the retail segment will make the market very competitive. The introduction of changes in the method of computing under-recoveries on the sale of products like HSD, LPG and SKO could have a major impact on the bottomline.
Mr. Singh further observed that even as individual businesses are doing well, it is found essential to innovate and stay ahead of the competition. With enhanced collaboration, the company proposed to generate growth opportunities for the businesses. Teams are engaged in cross-selling products serviced by individual businesses, so that the customer has easy access to the entire range of products.
Efforts are also on to strengthen the customer connect by achieving accentuated levels of customer service. The focus is on creating better visibility, structured customer interface and an upgraded complaints redressal system. Besides, the company has been truly blessed in terms of having a committed, skilled and hardworking team of employees across the country.
India’s growth potential holds great promose which, in turn, presents significant opportunities for companies in the energy sector. BPCL is well poised to take advantage of these opportunities and grow at a faster pace, he added.