Russian Crude To Be A Significant Part Of Mix, Says Bharat Petroleum
Bharat Petroleum's gross refining margin during the fiscal was the highest among its peers. This may be due to this crude sourcing strategy.
Bharat Petroleum Corp., during its fiscal 2024 earnings call, said they would prefer Russian crude grades going forward. In fiscal 2024, 39% of the oil refiner and marketer's crude imports came from Russia, compared to the 25–30% mix in the previous fiscal.
Notably, Bharat Petroleum's gross refining margin during the fiscal was the highest among its peers. This may be due to this crude sourcing strategy.
Crude Mix
The company imported 36 million metric tonnes of crude in FY24, it said.
The imported crude contained grades such as Urals, S4, and CPC. The company expects similar grades from Russia in FY25. Russian crudes will play a significant role in the company's total crude throughput going forward, the management said.
Crude Allocation
Among the company's refineries, Bharat Petroleum's Bina refinery will be allocated the highest amount of Russian crude, followed by the Kochi and Mumbai refineries.
Capex Guidance
Bharat Petroleum has budgeted a capex of Rs 16,400 crore for FY25 and expects a capex outlay of Rs 15,000–16,000 crore during the fiscal, it said.
The company has allocated around Rs 7,000 crore for marketing projects like CGDs, Rs 4,200 crore for refinery and petrochemicals projects, and around Rs 2,000–2,500 crore to increase its equity infusion in Bharat PetroResources.
As for the next five years, the company plans a Rs 1.5–1.7 lakh crore capex target.
Market Share
The oil refiner and marketer's has increased its market share in the petrol and diesel retail segments. The company's market share in the motor spirit and high-speed diesel segments stands at 29.6% and 29.8%, respectively, it said.
The oil marketer's liquid petroleum gas business also grew 3.4% during the year, reaching a market share of 27.4%.
The industrial business unit reached a market share of 23% among the oil companies and achieved 7.2 million metric tonnes in sales volume, according to management. Furthermore, the lubricant business achieved a market share of 24% among the oil companies and the highest ever sales volume of 421 TMT in FY24.
