State-owned Bharat Petroleum Corporation Ltd (BPCL) which recorded a 19.6% jump in its consolidated profit for the third quarter of FY25 has revised its capex target for the current fiscal year upwards from Rs 13,000 crore to Rs 16,000 crore and set the goal for 2025-26 at around Rs 19,000 crore. The company is also planning to come out with an initial public offering for Maharashtra Natural Gas Ltd – its joint venture with GAIL India by mid 2025-26, chairman and managing director G Krishnakumar and director-finance Vetsa Rama Krishna Gupta told Arunima Bharadwaj in an interview. While the company sees some shortage of Russian oil supplies in the short term owing to US sanctions, it is hopeful that Russian supplies will revive. Excerpts:
On the company’s Q3 financial performance and the short-term outoook
This quarter we recorded a stellar performance. We have Rs 4,649 crore profit after tax on a standalone basis compared to Rs 2,397 crore during second quarter of FY25, almost 94% increase on QoQ basis. We have had a good growth in sales volume at around 4% and an EBITDA of Rs 20,001 crores during April to December period. Our capacity utilisation of all three refineries put together is 107% even though there were shutdown periods during this quarter.
In terms of petrochemicals we have just concluded the project finance of Rs 31,800 crore for Bina refinery expansion. In terms of our renewable ambitions, we have approved the 50:50 JV formation with Sembcorp Green Hydrogen India to create around 3.5-4 GW renewable assets. We have also undertaken other initiatives for expansion in CGD business. We have made good progress in terms of achieving the minimum work programmes.
This quarter the refining performance while compared to the previous quarter is much better. Our refining margin in Q3FY25 is at $5.6 per barrel compared to $4.41 per barrel in the previous quarter.
Impact of the latest US sanctions on Russian oil supplies on the company
Every month around 35-38% throughput is coming from Russian crude. Now, almost 180 vessels have been put on sanctions, so it may impact our supplies from Russia on a temporary basis. We will have to wait and see for two to three months. Even Russia has not cut down any production and is continuously keeping the same production levels.
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