Highlights of BPCL Chairman AGM Speech 2024

Bengaluru:  FY 2023-24 Financial Highlights:

• Revenue from Operations: ₹5,06,993 Crore
• EBITDA: ₹47,115 Crore (250.22% year-on-year growth)
• Net Profit: ₹26,859 Crore (1,160.36% year-on-year growth)
• Net Worth (Total Equity): ₹75,635 Crore (41.31% year-on-year growth)
• Return on Capital Employed (RoCE): 34.07% (777.31% year-on-year growth)

FY 2023-24 Operational Highlights:

• Capacity Utilization: 112%
• Refinery Crude Throughput: 39.93 MMT (13.63% year-on-year growth) – Highest ever recorded
• Gross Refining Margin (GRM): $14.14/bbl – Highest among PSU Oil Marketing Companies
• Market Sales: 51.04 MMT (4.33% year-on-year growth) – Highest ever recorded

Market Performance

• Market Share: BPCL holds a significant market share in the Indian petroleum sector, being one of the largest oil marketing companies in the country.
• Retail Network: Operates over 20,000 retail outlets across India, catering to a diverse customer base.
• LPG Segment: BPCL has over 8 crore LPG customers, making it one of the leading players in the Indian LPG market.
• Expansion Plans: Plans to expand its network of fuel stations, including EV charging stations, across the country. Focused on increasing its renewable energy capacity and exploring opportunities in green hydrogen, biofuels, and compressed biogas.

Project Aspire: Capital Expenditure (Capex) Outlay

• Total Planned Capex: ~₹1.70 Lakh Crore
  • ₹75,000 Crore for Refineries and Petrochemicals
  • ₹10,000 Crore for Green Energy
  • ₹20,000 Crore for Marketing
  • ₹25,000 Crore for CGD/Gas
  • ₹32,000 Crore for Upstream
  • ₹8,000 Crore for CGD/Gas

Project Aspire: A Five-Year Strategic Framework

1. Nurture the Core: Enhancing Market Presence and Stability

• Refining: Expand refining capacity to 45 MMTPA with upgrades at Mumbai and Kochi refineries, and improve operational efficiency at Bina refinery.
• Marketing: Aim for market leadership through innovation, quality, and expansion of core businesses.
• Upstream: Invest in Bharat PetroResources Ltd (BPRL) to commercialize assets, ensuring profitability and cash flow.

2. Future Big Bets: Driving Transformative Growth

• Gas: Triple the footprint by expanding City Gas Distribution (CGD) infrastructure, making strategic acquisitions, and enhancing LNG regasification capabilities by FY 2028-29.
• Petrochemicals: Increase petrochemical capacity by 2.4 MMTPA, aiming for an 8% petrochemical intensity by FY 2028-29.
• Green Energy: Achieve 2 GW of renewable energy capacity by 2025, with a goal of reaching 10 GW by 2035.
• Non-Fuel Ventures: Expand convenience stores, quick-service restaurants (QSRs), GHAR outlets, BeCafés, and wayside amenities, with a focus on empowering rural women.
• Digital Ventures: Establish digital energy ventures to incubate future unicorns and scale in-house innovations.

BPCL’s Net-Zero Roadmap 2040

• • Commitment to Net-Zero: Aligned with India’s ‘Panchamrit’ goals, BPCL aims to achieve Net-Zero emissions for Scope 1 and Scope 2 by 2040.

• Investment: BPCL has planned a phased investment of ₹1 lakh crore to achieve net-zero emissions by 2040, focusing on:

• Renewable Energy Projects
• Green Hydrogen Development
• Carbon Capture, Utilization, and Storage (CCUS) Initiatives

• Targeted Emission Reductions:
  • 29% through Bio-CNG
  • 20% through Renewable Energy
  • 19% through Carbon Capture, Utilization, and Storage (CCUS)
  • 14% through Green Hydrogen
  • 9% through Energy Efficiency
  • 9% through Offsets

Refining & Petrochemical Projects

• Bina Refinery:
  • Bina Refinery’s expansion is a key focus, with plans to increase its capacity to 15 MMTPA (Million Metric Tonnes Per Annum) by 2026.
  • A significant capital outlay of ₹49,000 crore is dedicated to expanding refining capacity and enhancing petrochemical integration.
• Kochi Refinery:
  • Kochi Refinery’s expansion includes upgrading to produce higher-value products and integrating petrochemical facilities.
  • ₹15,000 crore allocated for capacity enhancement, including producing more niche petrochemicals.

Retail Network & Gas Business

• Retail Expansion:
  • BPCL plans to significantly expand its retail network, focusing on fuel stations and EV charging infrastructure.
  • Emphasis on enhancing customer experience with the Project Aspire initiative, aimed at transforming retail outlets into energy hubs.
• Gas & LPG Business:
  • Plans to scale the Gas business with a focus on city gas distribution (CGD), targeting 20% of India’s CGD market.
  • Expansion of LPG reach, focusing on increasing the number of customers and ensuring seamless distribution through advanced logistics.

Digital Transformation 

• Digital Footprint:
  • BPCL is heavily investing in digital technologies to transform operations, including AI, IoT, and data analytics.
  • Project Aspire is central to BPCL’s digital transformation, focusing on enhancing customer interaction, supply chain management, and operational efficiency.

Renewable Energy & Green Initiatives

• Renewable Energy:
  • BPCL plans to invest in 1 GW of renewable energy capacity by 2025.
  • Investments in solar, wind, and bioenergy projects are key to BPCL’s green energy transition.
• Biofuels:
  • BPCL is committed to scaling its biofuel production, including ethanol blending, compressed biogas, and bio-diesel initiatives.
  • Expansion of ethanol blending programs to achieve the government’s target of 20% ethanol blending in petrol by 2025.
• Green Hydrogen & Net Zero:
  • Investments in green hydrogen production as a clean energy alternative.
  • BPCL has set a target to achieve net zero emissions by 2040, focusing on reducing carbon footprint across all operations.