Muscat: Bharat Petroleum Corporation Ltd (BPCL), India's second largest oil marketing company, is hopeful of taking its 6-million tonne Bina refinery initial public offering (IPO) next fiscal, according to an Indian newspaper.
"If all goes as planned and if we report net profit next fiscal, which we are sure, and subject to market conditions, we hope to get the Bina facility (Bharat Oman Refinery) listed next fiscal," the Economic Times quoted as saying by BPCL chairman and managing director R. K. Singh.
He also said the Bina facility has already been making cash profit since the past fiscal and is operating at 106 per cent of its capacity and is getting the highest GRM (gross refining margin) for the company at $9.1 per barrel. GRM, Singh claimed, is on par with the best in the industry.
Earlier, the company had said it would divest 24 per cent of its 49 per cent stakes in the refinery to public, but this time around Singh did not specify any particular divestment range.
Commissioned in January 2011, the 6-million tonne or 120,000 bpd of Arab mix crude processing Bina refinery in Madhya Pradesh, is under a Rs25-billion expansion to take its capacity to 9 million tonnes.
BPCL owns 49 per cent or majority stake in the Rs113.97-billion Bina refinery with the rest being held by Oman Oil Company, the Madhya Pradesh government and financial institutions. Bharat Petroleum Corporation Ltd has laid a 935-km-long pipeline from Vadinar on the Gujarat coast to Bina to transport the imported crude.
The second largest state-run refiner, which has four refineries, is also on an aggressive Rs450-billion expansion plan over the next three years.