NEW DELHI: State-owned Bharat Petroleum Corp Ltd has set it capital expenditure target for 2024-25 at Rs 15,000 crore, the company said on Tuesday. Further, it also aims to expand its market networks with new pipelines underway.
“Augmenting strong marketing networks, we have approved two pipeline projects from Mumbai refineries,” the company said on an analyst call. In the current financial year 2023-24, the company’s capex outlay was at Rs 10,000 crore of which Rs 8,000 crore has been utilised till December 31.
It also informed that two pipelines passing through Tamil Nadu & Karnataka and the other one through Andhra Pradesh & Telangana are under construction. “This pipeline will optimise our product placement cost in the southern part of the country,” the top management said.
Further detailing the expansion plans, the state-owned oil marketing company also said that it is putting up three new depots in the northeastern part of the country and has acquired land for the same. The company’s market share in the petrol and diesel segment in the domestic retail market has also witnessed a rise. During Oct-Dec period, BPCL’s market share stood at 29.62 for petrol segment and 29.71 for diesel.
Addressing the rising tensions over Red Sea which poses a threat to oil shipments to the country’s refineries, the company said that so far there has been no impact and its supplies till April are secured. “Right now we are not impacted by the red sea issue. We are waiting and watching,” the company’s Chairman and Managing Director G. Krishnakumar said. “Till about April we are covered and we do not have any worry.”
The Board of BPCL had last year approved rights issues to raise up to Rs 18,000 crore which is expected to be issued by the end of FY24.
The company reported a rise of 82% in its consolidated net profit to Rs 3,181.42 crore in the quarter ended December from Rs 1,747.01 crore in the corresponding quarter of last fiscal. The net profit however fell on a sequential basis by 61% from Rs 8,243.55 crore in Q2FY24 due to inventory losses and lower gross refining margins.
Source: The Hindu Business Line
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