x
Breaking News
0

For BPCL, BJP's UP election Win Is A Positive Signal

By Amber PabrejaStock MarketsMar 20, 2017 11:19
in.investing.com/analysis/for-bpcl,-bjp's-up-election-win-is-a-positive-signal-200179382
For BPCL, BJP's UP election Win Is A Positive Signal
By Amber Pabreja   |  Mar 20, 2017 11:19
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Bharat Petroleum Corporation (NS:BPCL) had posted strong results in its latest quarter ending December 2016. The company showed its revenues increasing 13.6% QoQ, beating estimates, and EBITDA increasing 131.7% QoQ. However, the company's ongoing Kochi refinery work meant that gross refining margins (GRMs) have been lower than expected at US$5.9/bbl.

BPCL is aiming to complete upgrading its Kochi refinery by Mar 2017, by the end of the fourth quarter, and full capacity utilization to start in the coming financial year. The refinery's upgrade is expected to add 8-10% to to the company's earnings in FY18, driven by improvement in refining margins by an estimated $2/bbl. So the Kochi refinery timeline, and the improvement shown in refining margins once it is running at capacity will be key elements to watch - any delays and problems here will substantially impact estimates for BPCL. So far, except for a brief period of worker unrest in February this year, the Kochi refinery expansion has been running on schedule.

Government policy has also been aiding OMCs like BPCL. Deregulation in diesel prices have sharply pared subsidy losses for the firm. The increase in kerosene prices by the government by 25 paise, and the decision to cap sharing of kerosene subsidy has also cut company losses. The Direct Benefit Transfer now in place for LPGs has reduced losses BPCL previously faced due to leakages and corruption in distribution of the cylinders.

Since March 14, BPCL has been outperforming the S&P BSE Energy Index. Government energy policy in the coming quarters will be important for BPCL, and the definitive UP election win for the BJP suggests that the government's moves to cut and cap fuel subsidies for end consumers, and introduce direct benefit transfers has not hurt its popularity. That may encourage the central government to continue in the same direction, which would bring some green into BPCL's balance sheet.

(original article)

For BPCL, BJP's UP election Win Is A Positive Signal
 

Related Articles

For BPCL, BJP's UP election Win Is A Positive Signal

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

 
Are you sure you want to delete this chart?
 
Write your thoughts here
 
Replace the attached chart with a new chart ?
Post
Post also to:
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
 
Replace the attached chart with a new chart ?
Post 1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email