The shares of a multinational public sector undertaking company gained up to 5 percent after the company came into JV with Petronet LNG Ltd, and renewed a 20-year Partnership for a Sale & Purchase Agreement (“LNG SPA”) with Qatar Energy. 

With a market capitalization of Rs 1.35 lakh crore, the shares of Bharat Petroleum Corporation Ltd were trading at Rs 631.05 per share, increasing around 5 percent as compared to the previous closing price of Rs 601.55 apiece. 

According to the company filing, Bharat Petroleum Corporation Ltd formed a joint venture with Petronet LNG Ltd to extend a 20-year partnership for a sale and purchase agreement (“LNG SPA”) with Qatar Energy for the long-term purchase of approximately 7.5 MMTPA of liquefied natural gas (“LNG”). 

Furthermore, PLL is a Joint Venture Company with equity participation from four Oil & Gas Maharatna Public Sector undertakings Gas Authority of India Limited (“GAIL”), Oil and Natural Gas Corporation (“ONGC”), Indian Oil Corporation Limited (“IOCL”), and BPCL, each holding an equity share of 12.50%, collectively totaling 50%. 

Additionally, LNG SPA renewed the agreement inked on July 31, 1999, slated to expire in April 2028. The new arrangement covers deliveries starting in May 2028 and lasting 20 years, with supplies supplied. 

Moreover, The new LNG SPA will see GAIL (60%), IOCL (30%), and BPCL (10%) offtake quantities from PLL’s Dahej Terminal on a back-to-back basis, similar to the 1999 arrangement. 

The company’s revenue decreased by 3 percent, from Rs 119,170 crore in Q3FY23 to Rs 115,499 crore in Q3FY24. During the same period, net profit increased by 82 percent, from Rs 1,747 crore to Rs 3,181 crore. 

In 2022-23, BPCL’s market sales volume climbed by 15.08% to 48.92 MMT, compared to 42.51 MMT the previous year. As of March 31, 2023, BPCL has a market share of 25.07% among public sector oil firms, up from 24.73% the year before. BPCL attained its greatest-ever sales volume and market share. 

Bharat Petroleum Corporation Limited is an India-based firm that produces, refines, and distributes petroleum products. Its offerings include fuel services, Bharatgas, MAK Lubricants, refineries, gas, industrial and commercial, international trading, and proficiency testing.

Written by:- Abhishek Singh 


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