BPCL vows up to Rs 1.7 lakh crore capex investment in 5 years; shares jump 5%

Shares of Bharat Petroleum Corporation (BPCL) jumped over 5% to hit a 52-week high of Rs 517.85 on the NSE on Tuesday, extending its gains to the second session and up to 9% following the fuel retailer’s December quarter earnings on Monday during market hours.

The stock rallied following its post-earnings conference call held on Tuesday, where BPCL management announced that it planned to invest between Rs 1.5-1.7 lakh crore in capex over the next 5 years.

The news was reported by Reuters quoting a company executive.

Other key takeaways from the conference call, were:

1. The company is well-positioned to start the Mozambique gas project. It has so far invested $1.6 billion in the project.

2. It is working on an offer document for a planned rights issue of shares.3. Right now BPCL’S crude imports are not impacted due to the Red Sea crisis.4. The company sees oil prices at $80-$90/BBL in the next 6 months.

BPCL’s stock has also received a thumbs-up from US brokerage Citi, which has retained its ‘buy’ rating for a price target of Rs 560. In its post-earnings stock review, Citi highlighted a robust refining performance from the state-run refiner along with a sharp decline in its debt.

BPCL on Monday reported a 73.4% year-on-year (YoY) rise in net profit for the quarter ended December 2023 at Rs 3,397.30 crore. The profit for the quarter was higher than an ETNow poll estimate of Rs 3,271 crore. Revenue from operations, net of excise duty, declined 3% YoY to Rs 1.15 lakh crore, but the figure was higher than the estimated Rs 1.05 lakh crore. Sequentially, the bottom line plunged 60%, while the topline rose by more than 12%.

Read more at: BPCL Q3 Results: PAT soars 73% YoY to Rs 3,397 crore despite fall in revenue

Meanwhile, brokerage Motilal Oswal took a ‘neutral’ view on the counter ahead of its conference call. It said that BPCL’s Q3 show was in line with its estimates.

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