Bharat Petroleum Corporation Ltd. (BPCL) shares saw a sharp uptick in trade after the oil major announced it was set to commence pre-project activities for setting up of a green field refinery in Andhra Pradesh.
BPCL will set up a refinery and petrochemical complex in the east coast of Andhra Pradesh for an estimated cost of Rs 95,000 crore.
"The pre-project activities consists of various initial studies, land identification and acquisition,
preparation of Detailed Feasibility report, Environment Impact Assessment, Basic Design
Engineering package, Front End Engineering Design," said the firm in a filing with the exchanges.
At 12.20 pm, shares of BPCL were quoting Rs 291.35 on the NSE, higher by 0.8 percent compared to the previous session's closing price. The stock price trimmed some intraday gains.
Follow our market blog to catch all the live updates
Ahead of the announcement, Moneycontrol exclusively reported that Saudi Arabia was exploring investment opportunities in an upcoming refinery of the state-run Bharat Petroleum Corp. Ltd (BPCL) as part of the West Asian country’s broader investment plans in India, a senior government official said.
“Technical discussions between them (BPCL and Saudi Arabia) are ongoing. Saudi Arabia is looking at greenfield and strategic petroleum reserve projects in India for investments,” the official said.
In 2019, Saudi Arabia signed a memorandum of understanding (MoU) with India and announced a plan to invest $100 billion in the country in sectors such as agriculture, infrastructure, manufacturing and energy. The investment plan, however, has not materialised yet.
BPCL reported a 72 percent year-on-year drop in consolidated net profit at Rs 2,297 crore for second quarter of financial year 2024-25, amid reduced refining margins and lower cracks. The state-run oil retailer had posted profit of Rs 8,243 crore in the same period last year.
Over the past year, BPCL shares have risen around 30 percent in trade, as compared to a 13 percent jump in the benchmark Nifty 50 index during the same time period.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
