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Q2 of FY23 will be better than first quarter; eyeing 'net zero' target: BPCL chairman

The company cannot pass on crude oil price volatility frequently on a large scale but would intervene if crude prices were to go further higher than the prevailing levels, after the discussion with its stakeholders to remain financially comfortable, said AK Singh

August 30, 2022 / 11:47 AM IST
 
 
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Bharat Petroleum Corporation (BPCL) expects the second quarter to be better than April-June, when the state-owned oil refiner reported a significant loss dragged by losses in auto fuel sales, Chairman AK Singh said on August 29.

BPCL reported a net loss of Rs 6,291 crore in Q1, as it continued to hold fuel prices despite a steep rise in cost.

ALSO READ: Losses on petrol, LPG end; continue to incur loss on diesel sales: BPCL chairman

Replying to Moneycontrol’s query on auto fuel sales losses, the chairman said, “the crude prices have been very volatile and have been moving up or down by 5-7 dollars on a daily basis. The company cannot pass on this volatility frequently on a large scale but would intervene if the crude prices were to go further higher than the prevailing levels, after the discussion with its stakeholders to remain financially comfortable”. The chairman, however, did not divulge the crude level which would illicit a response by a price hike.

Talking at the company's 69th Annual General Meeting (AGM), Singh said LPG sales would no longer be loss-making from September onwards. Gasoline is not loss-making and losses on diesel are dwindling, he added.

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In other key highlights, the company spoke about its investment outlay and green hydrogen plans.

Investment outlay for net zero carbon emissions:

The company, which plans to scale up its renewable energy portfolio to 10 GW by 2040, is targeting net-zero carbon emissions. Although BPCL hasn’t worked out the entire capital outlay for the net-zero plan, but has earmarked a sum of Rs 5,000 crore for one gigawatt for renewable energy.

Green hydrogen plans:

BPCL has been setting up a 20-MW electrolyser facility at the Bina Refinery in Madhya Pradesh, which is expected to produce eight tonnes per day of green hydrogen. Parallelly, the company has collaborated with Bhabha Atomic Research Centre to work on alkaline electrolyser technology to eventually scale up the production of green hydrogen for commercial use. This technology is expected to bring down the cost by at least 40 percent.
Nickey Mirchandani Assistant Editor at Moneycontrol covering Materials and Industrials space which includes Metals, Cement and Infrastructure sector. She’s a presenter and a stock market enthusiast with over 12 years of experience who loves reading between the lines and scanning through numbers. Before joining Moneycontrol, she was an Associate Research Head at Bloomberg Quint/ BQ Prime, where she wrote analytical pieces, anchored multiple interviews and a show called “ Market Wrap”.
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