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Pushing the limits
A year of extreme volatilities and geopolitical dynamics, 2018-19 has tested the resilience, strength and staunch perseverance of your Company. And once again, BPCL has overcome every challenge, leveraged every opportunity and remained steadfast in all its endeavours.
! am happy to present to you the Annual Report for the year 2018-19 - a year in which your Company has created new benchmarks in physical performance, with refining throughput exceeding 31 MMT and market sales crossing 43 MMT. The higher refining throughput is attributable to the first full year of operations at Kochi Refinery (KR) post completion of the integrated Refinery Expansion Project (IREP), complemented with continuous maximisation of refining capacity in Mumbai Refinery. I am pleased to share with you that BPCL''s Kochi Refinery is now the largest PSU refinery in India, with installed capacity of 15.5 MMTPA and was dedicated to the Nation by the Hon''ble Prime Minister of India in January 2019.
On the financial front, the profit before depreciation, interest and tax of the Company was at Rs 14,948 crores, as against Rs 14,772 crores in the previous year, though there was a decline of 10.6% in profit after tax to Rs. 7,132 crores, mainly due to increased depreciation and finance costs. The Board of Directors announced dividend of 190%, maintaining last year''s dividend payout ratio.
Over the years, BPCL has established itself as a fully integrated oil and gas Company and we recognise the crucial role of our group companies in furthering our strategic intents. I would like to mention here that Bharat Petro Resources Ltd., our upstream subsidiary, positioned itself as an Operator in the international market, on winning the Onshore
Block 1 concession in Abu Dhabi, jointly with Indian Oil Corporation Limited. Bharat Oman Refineries Limited (BORL), our joint venture company, completed the debottlenecking project during the year, increasing its installed refining capacity from 6 MMTPA to 7.8 MMTPA. NRL has recently received Government approval for enhancing its capacity from 3 MMTPA to 9 MMTPA to better serve the growing fuel needs of north eastern India. Bharat Gas Resources Limited, our wholly owned gas subsidiary, has in the year of incorporation itself, won 13 Geographical Areas in the bidding rounds for City Gas Distribution networks, establishing its position as a significant player in the developing gas market in the country.
Our coveted Propylene Derivative Petrochemical Project (PDPP) at KR for manufacturing niche petrochemicals is progressing well and will be commissioned during the year. Aiming for a dominant position in this space, BPCL shall further expand its petrochemicals portfolio with increased investments over the years.
In a major network expansion drive, BPCL has strategically focussed on increasing its presence in high growth rural areas and agricultural pockets and will aggressively pursue Retail Outlet commissioning towards this end. BPCL will continue to innovate and improve service standards for alt its customers in its pursuit of excellence.
I believe that going forward digitalisation wilt no longer be an option, but a compulsion, with the entire value chain being digitally designed to deliver results. BPCL is focussed on creating a digital ecosystem that would orient a thinking that accepts digitalisation as the norm.
Clarity in responsibility and accountability together with robust monitoring and governance practices, especially in critical processes, is extremely significant for safe and smooth operations. I believe a powerful digital architecture, aided by technological precision, is imperative across all operating locations. Your Company has taken several strides in this direction and is committed to ensuring the highest standards of safety.
Our emphasis on nurturing the Startup ecosystem augurs wetl with our belief in infinrte possibilities. Through our ongoing Startup program me (Project Ankur), BPCL continues to support multiple startups across various domains with the aim of creating a multiplier effect on the Startup ecosystem.
The industry is passing through a very exciting phase, as it stands at the threshold of a defining transition towards a low carbon future and increasing electrification of mobility, persevered by the twin forces of growing environmental concerns and staggering technological developments. In becoming future ready and remaining ahead of the curve, BPCL continues to judiciously scan the environment for identifying emerging trends, opportunities and risks and seeks to build new age competencies. Talent management and a strong leadership pipeline shall continue to be our priority, as we gear up for a disruptive future.
As I conclude, I acknowledge the steadfast support and valuable contribution of all our partners in helping us perform, grow, aspire and pursue our vision, I take this opportunity to thank the Ministry of Petroleum & Natural Gas for their valuable guidance. Meeting the expectations of our investors will
always be our driving force, and I thank you for the encouragement and confidence reposed in the Company''s Management.
Leveraging our rich experience, strong execution skills, impeccable fore sighted ness, and tremendous agility, I am sure that BPCL will continue to scale new summits and emerge as India''s most admired energy Company.
Chairman & Managing Director