Pushing the limits
A year of extreme volatilities and geopolitical dynamics 2018-19 has tested theresilience strength and staunch perseverance of your Company. And once again BPCL hasovercome every challenge leveraged every opportunity and remained steadfast in all itsendeavours.
I am happy to present to you the Annual Report for the year 2018-19 - a year in whichyour Company has created new benchmarks in physical performance with refining throughputexceeding 31 MMT and market sales crossing 43 MMT. The higher refining throughput isattributable to the first full year of operations at Kochi Refinery (KR) post completionof the Integrated Refinery Expansion Project (IREP) complemented with continuousmaximisation of refining capacity in Mumbai Refinery. I am pleased to share with you thatBPCL's Kochi Refinery is now the largest PSU refinery in India with installed capacity of15.5 MMTPA and was dedicated to the Nation by the Hon'ble Prime Minister of India inJanuary 2019.
On the financial front the profit before depreciation interest and tax of the Companywas at Rs. 14948 crores as against Rs. 14772 crores in the previous year though therewas a decline of 10.6% in profit after tax to Rs. 7132 crores mainly due to increaseddepreciation and finance costs. The Board of Directors announced dividend of 190%maintaining last year's dividend payout ratio.
Over the years BPCL has established itself as a fully integrated oil and gas Companyand we recognise the crucial role of our group companies in furthering our strategicintents.
I would like to mention here that Bharat PetroResources Ltd. our upstream subsidiarypositioned itself as an Operator in the international market on winning the Onshore
Block 1 concession in Abu Dhabi jointly with Indian Oil Corporation Limited. BharatOman Refineries Limited (BORL) our joint venture company completed the debottleneckingproject during the year increasing its installed refining capacity from 6 MMTPA to 7.8MMTPA. NRL has recently received Government approval for enhancing its capacity from 3MMTPA to 9 MMTPA to better serve the growing fuel needs of north eastern India. Bharat GasResources Limited our wholly owned gas subsidiary has in the year of incorporationitself won 13 Geographical Areas in the bidding rounds for City Gas Distributionnetworks establishing its position as a significant player in the developing gas marketin the country.
Our coveted Propylene Derivative Petrochemical Project (PDPP) at KR for manufacturingniche petrochemicals is progressing well and will be commissioned during the year. Aimingfor a dominant position in this space BPCL shall further expand its petrochemicalsportfolio with increased investments over the years.
In a major network expansion drive BPCL has strategically focussed on increasing itspresence in high growth rural areas and agricultural pockets and will aggressively pursueRetail Outlet commissioning towards this end. BPCL will continue to innovate and improveservice standards for all its customers in its pursuit of excellence.
I believe that going forward digitalisation will no longer be an option but acompulsion with the entire value chain being digitally designed to deliver results. BPCLis focussed on creating a digital ecosystem that would orient a thinking that acceptsdigitalisation as the norm.
Clarity in responsibility and accountability together with robust monitoring andgovernance practices especially in critical processes is extremely significant for safeand smooth operations. I believe a powerful digital architecture aided by technologicalprecision is imperative across all operating locations. Your Company has taken severalstrides in this direction and is committed to ensuring the highest standards of safety.
Our emphasis on nurturing the Startup ecosystem augurs well with our belief in infinitepossibilities. Through our ongoing Startup programme (Project Ankur) BPCL continues tosupport multiple startups across various domains with the aim of creating a multipliereffect on the Startup ecosystem.
The industry is passing through a very exciting phase as it stands at the threshold ofa defining transition towards a low carbon future and increasing electrification ofmobility persevered by the twin forces of growing environmental concerns and staggeringtechnological developments. In becoming future ready and remaining ahead of the curveBPCL continues to judiciously scan the environment for identifying emerging trendsopportunities and risks and seeks to build new age competencies. Talent management and astrong leadership pipeline shall continue to be our priority as we gear up for adisruptive future.
As I conclude I acknowledge the steadfast support and valuable contribution of all ourpartners in helping us perform grow aspire and pursue our vision. I take thisopportunity to thank the Ministry of Petroleum & Natural Gas for their valuableguidance. Meeting the expectations of our investors will always be our driving force andI thank you for the encouragement and confidence reposed in the Company's Management.
Leveraging our rich experience strong execution skills impeccable foresightednessand tremendous agility I am sure that BPCL will continue to scale new summits and emergeas India's most admired energy Company.
Chairman & Managing Director