BPCL: Changing With The Times
Bharat Petroleum with its diversified offerings has managed to sail through the tough times during the current global slowdown. According to Motilal Oswal Securities, Bharat Petroleum has various new developments working for it. Under the supervision of Managing Director D Rajkumar, BPCL has attained new benchmarks, making it a perfect fit for the BW Real 500 ranker.
“BPCL has also decided to diversify into petrochemicals in a big way to tap the immense potential of the market,” Rajkumar said. “As a strategy, all future expansion plans of BPCL Group refineries are oriented towards production of petrochemicals, both commodity and niche derivatives. I am confident that soon BPCL will be a frontrunner in this space to deliver enhanced performance,” he said, adding the company’s strategy is to diversify simultaneously into gas and petrochemicals.
Assuming that renewable energy will overtake fossil fuels in the long run, oil and gas majors will have to find ways to improve their performance for survival. Sabyasachi Majumdar, ICRA Group Head for Corporate Ratings, said: “We expect to increase the share of RE in the all-India (power) generation to 10 per cent by FY20 and further to 13 per cent by FY22, based on capacity addition forecasts.”
Being a smart player, BPCL has already started focusing on its gas resources. It has drawn up ambitious plans to become a significant player in the gas business, establishing its footprints across the entire gas value chain. In the long-term, BPCL is expected to have a focused presence in the downstream gas business and ensure demand security in the sector.
Upscaling of its marketing network and capacity build-ing to improve its efficiency has resulted in improved performance.
Bharat Petroleum Corporation announced the rating actions by various rating agencies as under — the change in the sovereign rating of India has changed the outlook from Baa2 (Stable) to Baa2 (Negative) in respect of senior unsecured debts-foreign currency. Further, Moody’s while retaining the rating as Baa2 (Negative) has put the rating on ‘review for downgrade’ considering the disinvestment plan.
Crisil, on the other hand, placed long-term rating of AAA (Stable) in respect of non-convertible debenture and bank facilities-long term on ‘Rating Watch with Developing Implications’ considering the disinvestment plan.
One of the renowned Indian rating agencies the CARE has placed long-term rating of AAA (Stable) in respect of Non-convertible debenture on ‘ Rating Watch with Developing Implications’ considering the disinvestment plan.
Further, Fitch is continuously monitoring the developments with regard to the sale of government’s stake in BPCL along with transfer of management control to strategic partner.
In February 2019, the petroleum giant had announced plans to raise Rs 2,000 crore during the financial year through private placement of unsecured non-convertible debentures subject to market conditions. The debentures are proposed to be listed on debt segment of the BSE and NSE.
The sustainability front has also done good for them as per HPCL incorporate sustainable practices for each of our key sustainability development issues with defined targets and indicators. The company is aiming to enhance energy and operational efficiency, improve processes and technologies; thereby allowing it to minimise our impact on the environment and subsequently varied stakeholders.
