Bharat Petroleum Corporation Ltd Q2 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Kirtan Mehta - BOB Capital Markets Limited, Research Division - Analyst : Regarding the Mozambique project, could you give us the current status? And when do you expect the -- has the CapEx been finalized by the owners? And how the progress you anticipate on the project? Vetsa Rama Krishna Gupta - Bharat Petroleum Corporation Limited - Director of Finance, Head of Corporate Treasury & Director For Mozambique project, there is no change in terms of the force majeure, still it is under force majeure only. Something in terms of the revised project cost, there were discussions at the operating level committee at a group level, but not finalized what would be the revised project cost and what would be the time range for removal -- lifting of the force majeure. We are hopeful shortly maybe next couple of quarters, something positively it can happen. We are hoping that.

Question: Kirtan Mehta - BOB Capital Markets Limited, Research Division - Analyst : Sure. And would you be able to give us some more color on the Russian crude usage in terms of the quarterly usage has it been able to -- are we able to maintain a similar level in Q3 despite the increase in the crude prices? Vetsa Rama Krishna Gupta - Bharat Petroleum Corporation Limited - Director of Finance, Head of Corporate Treasury & Director I cannot give exact numbers, we cannot share, but at least in the similar quarters what potentially we can process the Russian crude. I think we are (inaudible) to our potential crude processing after we (inaudible) put together.

Question: Amit Rustagi - UBS Investment Bank, Research Division - Analyst : Sir, as per some market commentaries, GAIL was considering to merge some of their city gas assets with IGX, where BPCL is also one of the shareholders and the joint venture partner. So do you think that this kind of moves are possible? And are you also considering to merge some of your city gas distribution companies with the larger players to monetize them? Vetsa Rama Krishna Gupta - Bharat Petroleum Corporation Limited - Director of Finance, Head of Corporate Treasury & Director If we are not foreseeing any such need at this point of time.

Question: Amit Rustagi - UBS Investment Bank, Research Division - Analyst : Okay, sir. Got it. And sir, second question relates to the current spreads with respect to the crude. So which are the most opportunistic crudes we see as of now because in the last 1 year, there is a significant change in the discounts of the crude, which are available to the Indian refineries. So which fuels as for you is the most profitable as of now, right now? Vetsa Rama Krishna Gupta - Bharat Petroleum Corporation Limited - Director of Finance, Head of Corporate Treasury & Director You see today, we are almost processing around 108 grades of crude. It all depends on what pricing they offer when we go to the market and purchase. So every crude is important, every crude we value. Only thing at the particular point of month in case, which crude gives more commercial offer, currently, we take the decision in the process. Otherwise, our refineries can take almost 108 grades of crude. So every month we go to the market for any spot requirements. We assess which grades or which suppliers can give more commercial offers, then accordingly we decide.