Annual Report 2008-2009 - Bharat Petroleum

The Board of Directors has recommended a dividend of
70% (Rs. 7 per share) for the year on the paid-up share
capital of Rs. 361.54 crores, which will absorb a sum of
Rs. 284.53 crores out of the profit after tax, inclusive of
Rs. 31.45 crores for Corporate Dividend Tax on distributed
profits. BPCL’s net worth as on 31st March, 2009 stands
at Rs. 12,128.11 crores, as compared to Rs. 11,676.83
crores as at the end of the previous year.
The earnings per share amounted to Rs. 20.35 in
2008-09 as compared to Rs. 43.72 during 2007-08.
Internal cash generation during the year was lower at
Rs. 1,282.29 crores as against Rs. 2,636.33 crores
in 2007-08. BPCL’s contribution to the exchequer by
way of taxes and duties during 2008-09 amounted to
Rs. 25,331.78 crores as against Rs. 26,047.58 crores in
the last financial year.
Borrowings from banks increased from Rs. 13,340.25
crores as at 31st March, 2008 to Rs. 19,242.56 crores
at the close of the year. The Collateralised Borrowing and
Lending Obligation (CBLO) through Clearing Corporation
of India Limited amounted to Rs. 150 crores as at the
end of the year, as compared to Rs. 1,000 crores at
the end of the previous year. Loans from Oil Industry
Development Board increased to Rs. 761.50 crores as
at 31st March, 2009 compared to Rs. 653.24 crores
at the end of the previous year. Debentures worth
Rs. 1,000 crores were issued during the year and
remained outstanding as on 31st March, 2009.
Public deposits as at 31st March, 2009 stood at Rs. 3.45
crores, as compared to Rs. 28.80 crores at the end of
the previous year. The amount of deposits, matured but
unclaimed, at the end of the year was Rs. 0.21 crores,
which pertains to 41 depositors.
The total Capital Expenditure during the year 2008-09
amounted to Rs. 2,389.34 crores as compared to
Rs. 2,066.52 crores during the year 2007-08.
The Comptroller and Auditor General of India (C&AG)
has no comment upon or supplement to the Statutory
Auditors’ Report on the Accounts for the year ended
31st March, 2009. The letter from C & AG is annexed
as Annexure E.
REFINERIES
MUMBAI REFINERY
During the year 2008-09, Mumbai Refinery, which has an
installed capacity of 12 MMT, processed 12.26 MMT of
crude oil, as against 12.75 MMT processed in the previous
year. The refinery recorded its highest ever production of
several products including Motor Spirit (MS) and High
Speed Diesel (HSD). The refinery processed Saharan
Blend crude oil for the first time during the year. The
gross refinery margin for the current year stood at USD
4.48 per barrel of crude oil processed, as compared to
USD 4.60 per barrel in 2007-08. This translated into an
overall gross margin of Rs. 1892.28 crores for the year,
as compared to Rs. 1772.87 crores in 2007-08.
KOCHI REFINERY
Kochi Refinery achieved a throughput of 7.68 MMT
during this year, as compared to 8.20 MMT in
2007-08. The capacity utilization of the refinery
stood at 102.4%. The refinery processed two new
crude oils i.e. Antan from Nigeria and Saharan Blend
from Algeria. The refinery achieved its highest level
of production of several products including Aviation
Turbine Fuel (ATF), Euro-III HSD, Low Sulphur High
Flash HSD (LSHF HSD) and Bitumen during the year.
The gross refining margin for the year 2008-09 was
USD 6.27 per barrel of crude oil processed, as against
USD 7.18 per barrel in the previous year.
The details of the performance of the Refineries,
their activities and future plans are discussed in the
Management Discussion and Analysis Report (MD & A).
MERGER OF KRL WITH BPCL
As informed in the last year’s Report, merger of the
erstwhile Kochi Refineries Limited (KRL) with BPCL
under Sections 391 to 394 of the Companies Act 1956
had been completed, following receipt of the Order dated
18th August, 2006 issued by the Ministry of Company
Affairs, New Delhi. One of the Shareholders of the
erstwhile KRL had filed a Writ Petition in the Delhi High
Court challenging the merger, and the same is pending
as on date.
MARKETING
During the year, BPCL’s market sales volume touched a
level of 27.16 MMT, as compared to 25.79 MMT in the
previous year. This represented a growth rate of 5.31%
over the previous year, which is in line with the average
growth rate of 5.6% achieved by the public sector oil
companies. BPCL’s market share amongst the public
sector oil companies stood at 22.62% as at 31st March,
2009 representing a marginal decline from the level of
22.68% as at the end of the previous year. BPCL has
achieved the highest growth in Bitumen sales at 4.14%
amongst the public sector oil companies.
A detailed discussion of market performance is covered
in the MD & A.
PROJECTS
Central India Refinery
Bharat Oman Refineries Ltd. (BORL), a Company
promoted by BPCL along with Oman Oil Company
10 Bharat Petroleum Corporation Limited