Confidence Petroleum spurts after 50:50 JV with Norway's BW LPG

Confidence Petroleum India surged 12.42% to Rs 116.82 after the company formed a strategic alliance with Norway-listed BW LPG, a prominent LPG shipping and trading company.

The collaboration aims to strengthen LPG terminal infrastructure and downstream operations across India.

BW LPG, known as the worlds largest owner and operator of Very Large Gas Carriers (VLGC), has a significant presence in global LPG shipping and trading. Its Indian subsidiary, BW LPG India, is a key player in India's LPG imports and time-charter market.

As part of the collaboration, BW LPG has made substantial investments in Confidence Petroleum and established a joint venture named "BW Confidence Enterprise" ("BW Confidence"). The joint venture aims to invest in onshore LPG import infrastructures in India, with an initiated project in Mumbai to develop one of Indias largest cryogenic LPG storage facilities and plans to support LPG supply into India.

Additionally, BW LPG has invested $30 million in Confidence through a preferential allotment of equity shares, constituting 8.50% of the issued and paid-up share capital of Confidence on a fully diluted basis. This investment will support Confidence in expanding its capacity in LPG downstream assets.

Confidence Petroleum India said it envisions substantial future growth by expanding its current 68+ LPG bottling plant infrastructure to 100 and adding 500 Auto LPG Dispensing Stations, along with 200 CNG Stations within three years. These expansions are part of CPIL's plan to achieve a revenue of 10,000 crore in the next three years.

Confidence Petroleum India is a fully integrated LPG & CNG company. Its segments include LPG Cylinder Manufacturing and auto LPG and CNG dispensing stations.

On a consolidated basis, net profit of Confidence Petroleum India declined 1.96% to Rs 27.08 crore on 23.01% fall in net sales to Rs 554.29 crore in Q3 December 2023 over Q3 December 2022.

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