India's one of the top oil marketing companies Bharat Petroleum Corporation (BPCL) is planning to amalgamate its wholly-owned subsidiaries, Bharat Oman Refineries Limited (BORL) and Bharat Gas Resources Limited (BGRL) into the company. According to Fitch Ratings, this will result in greater synergies between the various verticals of the company. Moreover, this amalgamation will have no negative or positive impact on the current ratings of the company. BPCL is the third largest petroleum refinery in India which is basically a government-owned PSU (Public Sector Unit). Bharat Oman Refineries Limited (BORL) owns and operates the Bina Refinery with an annual capacity of 7.8 million metric tons in India's Madhya Pradesh state. While Bharat Gas Resources Limited (BGRL) which is formed in June 2018, holds BPCL's interests in the areas where it intends to build city gas distribution networks. Moreover BGRL has interests in 13 areas at various stages of development, some of which would start contributing to earnings over the next four to five years. This will bring all the three BPCL's refineries, i.e., Mumbai Refinery Kochi Refinery & Bina Refinery under one entity after the amalgamation. According to the experts, this will improve efficiency in terms of crude procurement, inventory management, and hedging mechanisms. · According to the rating company Fitch, after the amalgamation, BPCL will be able to optimize its business plan for retailing compressed natural gas at its city gas distribution networks further in the light of its 24% share of the number of Indian fuel retail outlets and the potential to transform them into holistic energy stations catering to multiple types of fuel needs. · This amalgamation will have a very positive impact on the sentiments of the investors. It is expected that BPCL's share price is going to rise in the future. Rating companies like Fitch may also be likely to revise their ratings for the BPCL. According to the Fitch Ratings Fitch's assessment of BPCL's standalone credit profile fully consolidates BORL and BGRL, with credit metrics that have adequate headroom under the negative sensitivities. BPCL's rating is equalized with that of its largest shareholder, the Indian sovereign (BBB-/Negative), based on Fitch's Government-Related Entities Rating Criteria, due to the strong likelihood of government support. The Negative Outlook reflects that on the Indian sovereign. For more details visit: https://www.bharatpetroleum.in Company:- Bharat Petroleum Corporation Limited User:- Bharat Petroleum Email:- singhgreetha@gmail.com Phone:- 022-22713000Some Straight Facts About the Companies
3 Main Advantages of this Amalgamation
| Company Name | Contact Person | Contact Number | Email Id | Website | Address |
|---|---|---|---|---|---|
| BPCL | 09420456789 | singhgreetha@gmail.com | https://www.bharatpetroleum.in/ |
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