Shares of Bharat Petroleum Corp. rose over 4% to an all-time high on Thursday after its joint venture executed a long-term gas supply agreement with Qatar Energy
The renewal by Petronet LNG Ltd. is for the purchase of liquified natural gas of approximately 7.5 million tonne per annum on a long-term basis, according to an exchange filing on Wednesday.
The LNG SPA is a renewal of the existing agreement signed on July 31, 1999, which was set to expire in April 2028. The new agreement entails deliveries commencing from May 2028 for a duration of 20 years with supplies on a delivered basis, it said.
PLL is an LNG terminal-owning company with equity participation from four oil & gas public sector undertakings — GAIL (India) Ltd., Oil & Natural Gas Corp., Indian Oil Corp. and BPCL. Each holds an equity share of 12.50%, collectively totaling 50%.
The existing long-term agreement between PLL and Qatar Energy accounts for around 35% of India's LNG imports as of Feb. 6, according to BPCL
BPCL's stock rose as much as 4.08% during the day to Rs 626.60 apiece on the NSE. It was trading 2.98% higher at Rs 620 per share, compared to a 0.15% advance in the benchmark Nifty 50 at 9:54 a.m.
The total traded volume so far in the day stood at 2.5 times its 30-day average. The relative strength index was at 84, implying the stock is overbought.
Twenty-two out of the 34 analysts tracking BPCL have a 'buy' rating on the stock, five recommend 'hold' and seven suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 13.1%
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