At the outset i wish you and your loved ones the best of health andwell-being!
i am extremely happy to communicate with you for the first time aftertaking over additional charge of Chairman and Managing director of your Company.
The year 2019-20 that progressed well until december 2019 witnessedunprecedented and confounding changes transitions and economic severities in the lastquarter. The CoviD-19 pandemic brought the world to a standstill with most countriesincluding ours resorting to lockdowns and containment measures to check the spread of thedisease. As global economies gradually open up and activity resumes it reminds me of afamous quote by Confucius "our greatest glory is not in never falling but in risingevery time we fall."
Amidst these adversities your Company emerged stronger exhibiting aresolute approach identifying opportunities thus redefining resilience.
Playing a leading role in nation building your Company ensureduninterrupted supplies of petroleum products and has been in the frontline of serviceduring the pandemic. Mindful of the evolving risks on various fronts we have focussed onsafe operations optimisation of resources and enhancement of efficiencies leveragingtechnology and digitalisation to skilfully navigate through these challenging times.
The extreme volatility in the crude oil prices and foreign exchangerates and the pandemic-induced disruption in economic activity at the end of the year2019-20 severely impacted the annual financial performance resulting in an overalldecline in the profits of the Company for the year. The profit after tax on a standalonebasis declined to ' 2683 crores mainly due to lower refining margins and substantialinventory and foreign exchange variation losses. However your Company has been able tobetter its physical performance despite significant loss of sales in March 2020 andachieved market sales and refinery throughput of 43.10 MMT and 31.91 MMT respectively.
I am happy to share that your Company was the only oil MarketingCompany (oMC) amongst PSU oMCs to register a growth in physical performance during theyear. The Board of directors declared a dividend of 165% in the month of March 2020.
At the group level the profit after tax attributable to BPCL stood at' 3055 crores while market sales and refinery
throughput were higher at 43.36 MMT and 38.30 MMT respectively.Consolidating interests further Bharat oman Refineries Limited hitherto our 50:50 Jointventure Company has undergone a change in its equity structure consequent to conversionof warrants into equity shares raising BPCL's equity shareholding to 63.38%.
Leveraging organic and inorganic growth opportunities over the yearsyour Company has expanded its footprint across the hydrocarbon value chain and become afully integrated oil and gas player.
Pursuing the Go-GDP strategy your Company has taken definitivesteps towards fostering a Greener environment permeating Digitalisation inall aspects of business and firming up its footprints in the Petrochemicalsportfolio.
our successful pilots of the newly launched "E-drive"initiative - an innovative electric vehicle mobility model using BPCL's Retail outlets asbattery swapping stations pave the way for pan India expansion. our presence across thealternate fuels / energy solutions will enable swift scale up once these verticals primeup and economics improve.
The importance of digitalisation cannot be overemphasised in a worldwhich is converging towards a new normal post pandemic. Creating a digital ecosystem hasbeen our immediate priority and the Company has taken major strides in proliferation ofdigitalisation across operations particularly refining operations and management andcustomer facing interfaces.
I am happy to share that the Propylene derivative Petrochemical Project(PdPP) at Kochi Refinery (KR) for manufacturing niche petrochemicals is completed and willstart commercial production soon. The project to produce Polyols and related products atKR is on track and will add to our growing petrochemicals portfolio generatingsubstantial value going forward.
In a major step towards enhancing the distribution network and reachingnearer to customers your Company commissioned 1447 new Retail outlets across thecountry the highest in a financial year amongst the PSU oMCs. BPCL also commissioned 118vehicles fitted with dispensers once again the highest amongst PSU oMCs under the newinitiative of door-to-door delivery of diesel to stationary engines / generators andmining and construction equipment. Customer centricity being an integral part of BPCL'sculture the Company has created newer benchmarks in customer service and carved a nichefor itself.
Towards exploring innovative solutions to identified business concernsand simultaneously supporting the startup ecosystem making india self-reliant yourCompany launched a unique grand challenge for startups with prize money for winners aswell as creating opportunities to partner with BPCL. Going forward BPCL is committed tosupport startups in a variety of ways including grant of funds equity investmentbusiness exposure mentoring and guidance.
Amidst the pandemic crisis when Health Safety Security andEnvironment (HSSE) is gaining traction globally BPCL has always recognised it as thetopmost priority. Further strengthening the HSSE framework your Company has put in placecomprehensive pandemic compliant protocols across all touchpoints to ensure safety of allincluding employees customers vendors and partners. Capitalising on the work fromhome' norm we have seamlessly managed business operations across all functions in theorganisation leading to limited onsite presence of manpower in these dire circumstances.Remaining steadfasttowardsbeingalearning organisation we have also utilised thisopportunity of work from home' to augment people capabilities and upgrade theirskill sets through various technologically enabled initiatives like digital learning andpurposeful engagement.
With the Government of india's decision to sell its stake in BPCL to astrategic buyer your Company is at the threshold of a major transformation which isexpected to unlock immense value by way of enhanced professionalism access to advancedtechnologies newer global markets a diversified product portfolio and improvedavailability of resources and capital. This will create significant value for allstakeholders. The market capitalisation of your Company scaled peaks during the year andeven surpassed the market capitalisation of the largest PSU oMC on a couple of occasionsbearing testimony to the rising investor confidence in BPCL's intrinsic value.
Before i conclude i would like to thank all the stakeholders for theirimmense contribution and wholehearted support in designing our success and partnering inall our endeavours and aspirations. We fully acknowledge the valuable guidance andinspiration from the Ministry of Petroleum and Natural Gas. i would also like to place onrecord the deepest appreciation for the relentless efforts unparalleled dedication andunmatched loyalty of our employees who are our biggest asset together with our networkof dealers distributors business partners vendors and service providers. We arethankful for the confidence reposed in us by the investors and customers which gives uscourage to dream strength to accomplish and incentive to excel.
Humanity occupies centre stage at this juncture and we in BharatPetroleum have always taken the lead in service before self. our dynamic teams havedemonstrated deep reserves of resilience in responding swiftly to the needs of the nationand will continue to ceaselessly serve our nation. We take pride in touching lives andmaking a difference.
As the impending wave of transition structural and sectoral reshapesthe Company and rearranges the energy matrix i firmly believe that BPCL with itsfarsightedness responsiveness agility and fortitude will continue to occupy its centralposition in the industry and scale newer heights in times to come.
Stay safe and healthy !
|K. Padmakar |
|Chairman & Managing Director |