For Bharat Petroleum Corporation Ltd. (BPCL), the year gone by has seen several milestones. In terms of profitability, BPCL has once again delivered a stupendous performance by achieving an all-time high profit after tax of Rs. 7,431.88 crores. These phenomenal results have enabled the company to meet the stringent criteria set by the Government of India for classification as a Maharatna Company. Given the dedication and commitment of every member of the BPCL family, the company will keep delivering outstanding results in the years ahead.
The record profits have been the result of strong all-round performance. The refineries at Mumbai and Kochi have delivered robust gross refining margins. The marketing business units have more than held their own in a highly competitive environment with sales volume growing at 6% over the previous year. BPCL’s subsidiary company, Numaligarh Refinery Ltd. registered an all-time high profit after tax of Rs. 1,224.35 crores. For the first time since the commissioning of the Bina Refinery, Bharat Oman Refineries Ltd. ended the year in the black with a profit after tax of Rs. 365.78 crores.
The company’s earnings per share crossed the 3 digit mark and stood at Rs. 102.78 per share. The Board has proposed the highest ever dividend in the company’s history, including interim dividend which has already been paid.
While the operational and financial results achieved are indeed heartening, the ability to incur substantial amounts of capital expenditure and execute high value complex projects in a timely and cost effective manner is a matter of great pride. The Integrated Refinery Expansion Project (IREP) at Kochi Refinery, which is by far the largest single project to be undertaken by the company, is being commissioned on schedule. Work on the Propylene Derivatives Petrochemicals Project at Kochi Refinery has commenced. During the year, the capital expenditure of the BPCL Group was Rs. 11,360 crores, which is 14% more than the previous year. All this gives immense confidence that the BPCL group will be able to deliver on the ambitious capital expenditure plans for the next five years, involving an outlay of around Rs. 1,00,000 crores.
BPCL’s wholly owned subsidiary company, Bharat PetroResources Ltd. (BPRL) continues to take rapid strides and has joined hands with Oil India Ltd. and Indian Oil Corporation Ltd. to acquire stakes in a couple of key assets in Russia. This will contribute significantly towards the country’s efforts in enhancing its crude oil security, apart from enabling BPRL to commence revenue generation in a significant manner.
The year gone by was memorable, as BPCL celebrated its 40th Foundation Day in January 2016. The Ruby Anniversary is an important milestone and provides a perfect opportunity to look back with great satisfaction on all that they have achieved and rededicate themselves to excelling in the years ahead. BPCL has reached their present position thanks to the hard work and dedication of the entire BPCL team. The contribution of all its partners cannot be overstated. It is this unstinted support and unlimited energy that propels the organisation to transcend boundaries and create lasting value.
The company continues to remain steadfast in its commitment to society. To commemorate the occasion of the Ruby Anniversary, they have institutionalized the ‘Energising Bharat Awards’, to felicitate individuals, who have selflessly made a significant contribution to society in the fields of primary education, skill development, water conservation, rural health and women’s empowerment. These Awards were presented by the Minister of State (I/C) for Petroleum & Natural Gas, Mr. Dharmendra Pradhan, during the celebrations in Mumbai.
The organisation is constantly exploring new opportunities which can contribute towards enhancing shareholder value and meet emerging customer needs. BPCL has recently launched diverse non-fuel initiatives with offerings, which are customized to meet the specific needs of identified customer segments like the rural markets, urban travellers, fleet owners, etc. These are also expected to significantly augment fuel sales. The pilots undertaken in select rural locations have given encouraging results. I am sure that these initiatives will give BPCL a definite competitive edge.
BPCL has consistently been creating value for all its stakeholders. It has emerged as a truly comprehensive player in almost all facets of business. In the coming years, BPCL plans to invest heavily in infrastructure related projects to support the growing energy demand in the Indian economy, which is poised to become one of the fastest growing economies in the world.