BPCL Cuts 2021 Capex By 36 Per Cent, COVID-19 Weighs Over the Refinery Sector
- 15-Aug-2020 5:00 PM
- Journalist: Timothy Greene
Hit by the pandemic blows, India’s largest fuel retailer Bharat Petroleum Corp. (BPCL) has decided to cut its FY21 capex by 36% to USD 1.1 billion (INR 80 billion) from the pre-decided amount of USD 1.7 billion. The reduction in spending plans has been announced taking into focus what is important and what will fetch profits to the company. BPCL’s head of finance N. Vijayagopal remarked on the company’s decision that BPCL is planning shift some of its less important expenditures from the year 2020-21 to 2022-23. He also stated that old projects worth USD 20 million might be postponed to the next year and the company would now maintain keen focus on its petrochemicals sector and refinery expansion. BPCL is currently operating its refineries at about 70-75% capacity due to demand slowdown and contracting margins on its petrochemicals business. However, the company is anticipating improved margins in the next two quarters and is planning to open about 1,000 fuel stations this year. Mr. Vijaygopal also mentioned that the privatization of BPCL is expected to complete by March next year.