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Low crude rates to boost valuation of govt share in BPCL

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Bharat Petroleum Disinvestment

New Delhi, March 12 : The government could hope to get much better valuation for its share in Bharat Petroleum Corporation (BPCL), if the current trend of low global oil prices continues well into 2020 as it will positively impact the marketing margin of the oil marketing company (OMC).

As per the market assessment By Reliance Securities, for every $1 a barrel fall in crude price, the OMCs’ marketing margin is expected to improve Rs 0.45 a litre. If we factor in that since mid-January crude prices have fallen by over $25 a barrel, the OMCs gains would be manifold. But in doing direct calculation, the value of rupee also plays a big factor and it has fallen sharply, lately.

Net marketing margin on diesel stands at Rs 5.5 a litre (as on March 7), while the average for Q4FY20 till date stands at Rs 3.53 a litre up 71 per cent QoQ (Q3FY20 – Rs 2.06 a litre). The net marketing margin on petrol stands at Rs 1.83 a litre against negative margin during Q3FY20.

The brokerage firm said HPCL would be the biggest beneficiary of lower crude prices resulting in higher marketing margin for the refiner. The company’s net marketing margin on petrol and diesel of Rs 1 a litre can raise its net profit by 41 per cent in FY21, while $1 a barrel change in GRM will potentially increase/decrease its net profit by 17 per cent.

Public sector oil refiner and retailer BPCL would be the second biggest beneficiary as its net profit would be impacted by 31 per cent in FY21 for every Rs 1 a litre rise in net marketing margin on petrol and diesel. Also, $1 per barrel change in GRM would increase/decrease BPCL’s net profit 16 per cent, Reliance Securities said.

OMCs have also started importing more crude from Saudi Arabia after the US sanctions on Iranian exports. In 2019, Saudi Arabia remained the second biggest oil seller to India. It increased 19 per cent of overall crude purchase of India (4.6 million bpd) from 17 per cent in 2018.

The OMCs (BPCL+HPCL+IOCL) import crude oil from Saudi Arabia. In January 2019, they purchased 24 per cent of total crude from Saudi Arabia. “The OMCs could be the largest beneficiary of sharp cut in official selling price to Asian countries by Saudi Arabia,” it said.

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Nizamuddin Railway station employee found corona positive

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coronavirus infection

New Delhi, April 8 (IANS) A 59-year-old employee of Indian Railways who is posted at the Nizamuddin station has been tested positive for coronavirus. The man has a few months left for retirement.

According to the Northern Railway, he was undergoing treatment at Central Hospital of Northern Railway, due to which 15 employees including doctors have also been infected in this hospital. This employee came to the hospital on March 31 and thereafter on April 2 due to poor health. Initially, there were no traces of coronavirus in him.

Deepak Kumar, Public Relations Officer of Northern Railway, said: “On April 2, when the man came to be hospitalized, the doctors suggested him to undergo MRI and CT scan tests. On April 6, when his report came, he was found positive for coronavirus. The patient has been sent to Rammanohar Lohia Hospital.”

Meanwhile, all 15 people of the Northern Railway Central Hospital, who came in contact with the corona-affected railway staff, have been kept in isolation. These people include doctors and nurses.

The infected railway staff works as a supervisor at the Nizamuddin railway station, hence, doesn’t come in direct contact with the people.

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Crowds at UP banks as lockdown extension appears possible

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Bankruptcy
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Lucknow, April 8 (IANS) With newspapers and television channels announcing the possibility of the national lockdown being extended, people, on Wednesday, started rushing to the banks that witnessed substantial crowds.

The police in Uttar Pradesh had a tough time ensuring social distancing outside the banks.

The bank staff also tried to persuade the customers to stand at circled spots to ensure social distancing. However, since most banks do not have shades or porches, the customers were obviously uncomfortable standing in the sun.

Most of the customers at nationalized bank branch in Hazratganj area were senior citizens.

One of them said, “I have been standing here for about 40 minutes. There is no bench or chair for us. Moreover, the sun is right above our heads. There is no problem in waiting but some facilities should be made for senior citizens.”

Another customer, meanwhile, admitted that he had come to withdraw money after learning that the lockdown is likely to be extended.

“My pension has not come till now but I am going to withdraw money from my account because everything is being sold at a premium in the lockdown,” he said.

A police inspector, managing crowds outside another bank, said, “We understand their problem but they should also understand the need for social distancing. We are not enjoying this duty but rules have to be followed.”

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Markets open in red on Wednesday

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Sensex equity Nifty

Mumbai, April 8: The 30-scrip Sensitive Index (Sensex) on Wednesday opened on a negative note during the morning session of the trade.

The Sensex of the BSE opened at 29,701.92 points and touched a high of 29,916.22. The Sensex touched a low of 29,602.94 points.

On Tuesday the Sensex closed at 30,067.21 points.

The Sensex is trading at 29,743.07 down by 324.14A points or 1.08 per cent.

On the other hand, the broader 50-scrip Nifty at the National Stock Exchange (NSE) opened at 8,688.90 points after closing at 8,792.20 points.

The Nifty is trading at 8,728.60 points in the morning.

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