A Bharat Petroleum Corp Ltd (BPCL) official said it’s looking ‘challenging’ to complete the company’s proposed privatisation by March 2021.
While speaking at an analyst conference, BPCL’s head of finance N. Vijayagopal also spoke on a host of other issues related to the company.
Vijayagopal said BPCL privatisation by March 2021 looks “challenging” as the initial bid submission deadline has been extended to mid-November and any spurt in coronavirus infections could prevent foreign players from traveling to do due diligence of the assets.
BPCL on Thursday reported 58 per cent jump in September quarter net profit on the back of inventory gains and a rise in refining margin.
Consolidated net profit at ₹2,589.52 crore in July-September compared to ₹1,502.63 crore in the same period a year ago.
“We had excellent results both physical and financial. First-quarter refinery performance was dismal due to COVID-19 lockdown. Our strategy of buying crude oil prices at low prices in May and June has resulted in substantial refinery margin,” Vijayagopal told reporters.
Centre’s plan to sell its 53.29% stake in BPCL was first announced in November 2019, and is part of a broader programme to spin off or sell stakes in dozens of state-owned companies. The government had planned to sell the stake by the end of the fiscal year to March 2021.
Reuters last month reported that BPCL’s privatisation could spill over into the next fiscal year that begins in April 2021 and that Saudi Aramco and Russia’s Rosneft may not participate in the bid as low oil prices affect their investment plans.
BPCL’s shares have tumbled by about 38% from highs seen in November last year as fuel demand in India has been hit by restrictions imposed to stem the spread of the coronavirus.
