BPCL Share Price Declines As Company Indicates Fall In Russian Crude Supplies

Bharat Petroleum Corp Ltd.'s share price fell 2.6% on Thursday after the company in its post-earnings call indicated a 20% reduction in Russian crude supplies.

The company reported its third-quarter earnings on Wednesday with a 10.1% increase in revenue to Rs 1.13 lakh crore, compared to Rs 1.02 lakh crore in the previous quarter. The company’s Earnings Before Interest, Taxes, Depreciation, and Amortisation (Ebitda) surged by 68% to Rs 7,580 crore, up from Rs 4,512 crore, with a margin improvement to 6.7% from 4.4%. Net profit saw a sharp rise of 93.9%, reaching Rs 4,649 crore, compared to Rs 2,397 crore in Q2 FY25.

During its post-earnings call, the company said it has allocated Rs 10,000 crore for renewable energy investments, with Rs 3,000 crore set aside for spending in both FY26 and FY27. BPCL aims to achieve a target of 2 GW in renewable energy capacity within two years, and a more ambitious 10 GW by 2030. In terms of natural gas, BPCL plans to begin receiving gas from Mozambique by 2028-29, as per the company's concall.

As for crude oil procurement, BPCL plans to offset the expected decline in Russian crude imports by sourcing more crude from West Asia. The company anticipates a 20% reduction in Russian crude supplies starting in March, while noting that Russian crude typically offers a discount of $3 per barrel.

BPCL confirmed that Russian cargo accounted for 31% of the crude refined in the October-December period, but that supplies from Russia are now decreasing. Additionally, BPCL has finalised Russian crude cargo for January-February, but has faced challenges securing adequate volumes for March. The company’s refining capacity currently allows it to process up to 34-35% of Russian crude, as per company's concall.