BPCL Chairmans Speech

Dear Shareowners,

It is indeed a great privilege for me to present the report of the
performance of your Company for the year 2015-16. It has been a year
when the Company has crossed several milestones. In terms of
profitability, BPCL has once again delivered a stupendous performance
by achieving an all-time high profit after tax of Rs. 7,431.88 crores.
These phenomenal results have enabled the Company to meet the stringent
criteria set by the Government of India for classification as a
Maharatna Company. Given the dedication and commitment of every member
of the BPCL family, I am sure that BPCL will keep delivering
outstanding results in the years ahead.

The record profits have been the result of strong all-round
performance. The refineries at Mumbai and Kochi have delivered robust
gross refining margins. The marketing business units have more than
held their own in a highly competitive environment with sales volume
growing at 6% over the previous year. BPCL''''s subsidiary company,
Numaligarh Refinery Limited registered an all-time high profit after
tax of Rs. 1,224.35 crores. For the first time since the commissioning
of the Bina Refinery, Bharat Oman Refineries Limited ended the year in
the black with a profit after tax of Rs. 365.78 crores.

The Company''''s earnings per share crossed the 3 digit mark and stood at
Rs. 102.78 per share. The Board has proposed the highest ever dividend
in the Company''''s history, including interim dividend which has already
been paid. You would have also received the Bonus Shares that were
issued by capitalizing a part of the Company''''s Reserves. The capital
market has given its vote of confidence with the market capitalization
crossing Rs. 87,000 crores.

While the operational and financial results achieved are indeed
heartening, our ability to incur substantial amounts of capital
expenditure and execute high value complex projects in a timely and
cost effective manner is a matter of great pride. The Integrated
Refinery Expansion Project (IREP) at Kochi Refinery, which is by far
the largest single project to be undertaken by the Company, is being
commissioned on schedule. Work on the Propylene Derivatives
Petrochemicals Project at Kochi Refinery has commenced. During the
year, the capital expenditure of the BPCL group was Rs. 11,360 crores,
which is 14% more than the previous year. All this gives immense
confidence that the BPCL group will be able to deliver on the ambitious
capital expenditure plans for the next fve years, involving an outlay
of around Rs. 1,00,000 crores.

BPCL''''s wholly owned subsidiary company, Bharat Petro Resources Limited
(BPRL) continues to take rapid strides and has joined hands with Oil
India Limited and Indian Oil Corporation Limited to acquire stakes in a
couple of key assets in Russia. This will contribute significantly
towards the country''''s efforts in enhancing its crude oil security,
apart from enabling BPRL to commence revenue generation in a
significant manner.

The year gone by was memorable, as BPCL celebrated its 40th Foundation
Day in January 2016. The Ruby Anniversary is an important milestone and
provides a perfect opportunity to look back with great satisfaction on
all that we have achieved and rededicate ourselves to excelling in the
years ahead. We have reached our present position thanks to the hard
work and dedication of the entire BPCL team. The contribution of all
our partners cannot be overstated. It is this unstinted support and
unlimited energy that propels the Organisation to transcend boundaries
and create lasting value.

We continue to remain steadfast in our commitment to society. To
commemorate the occasion of the Ruby Anniversary, we have
institutionalized the ''''Energising Bharat Awards'''', to felicitate
individuals, who have selflessly made a significant contribution to
society in the fields of primary education, skill development, water
conservation, rural health and women''''s empowerment. These awards were
presented by the Hon''''ble Minister of State (I/C) for Petroleum &
Natural Gas, Shri Dharmendra Pradhan during the celebrations in Mumbai.

BPCL continues to support the initiatives undertaken by the Ministry of
Petroleum & Natural Gas to promote economical, easily accessible, clean
and safe cooking fuel across the country, especially in the rural
pockets. The PAHAL (Pratyaksh Hanstantarit Labh) Scheme launched in
November 2014, to transfer the LPG subsidy directly to the bank account
of the consumer, has been recognized by the Guinness Book of World
Records as the largest cash transfer programme (households). Similarly,
the ''''#GiveItUp'''' campaign appeal by the Government of India towards
nation building has made considerable progress, with over 104 lakh
customers across the country having surrendered their LPG subsidy
entitlement. These initiatives have substantially reduced the subsidy
burden on the Government and enabled it to use the money for providing
LPG connections to families who are below the poverty line. The Company
has also been in the forefront of the other flagship initiative
introduced by the Government of India viz. the Pradhan Mantri Ujjwala
Yojana (PMUY). The scheme, launched on 1st May, 2016 by the Hon''''ble
Prime Minister, aims to provide free LPG connections to women belonging
to below poverty line households. The initiatives not only enhance the
quality of life in rural areas, but also take India a step closer to
being a developed nation.

The Organisation is constantly exploring new opportunities which can
contribute towards enhancing shareholder value and meet emerging
customer needs. We have recently launched diverse non-fuel initiatives
with offerings, which are customized to meet the specific needs of
identified customer segments like the rural markets, urban travelers,
feet owners etc. These are also expected to significantly augment fuel
sales. The pilots undertaken in select rural locations have given
encouraging results. I am sure that these initiatives will give BPCL a
definite competitive edge.

BPCL has consistently been creating value for all its stakeholders. It
has emerged as a truly comprehensive player in almost all facets of
business. In the coming years, BPCL plans to invest heavily in
infrastructure related projects to support the growing energy demand in
the Indian economy, which is poised to become one of the fastest
growing economies in the world.

I would like to conclude by acknowledging the steadfast support of
BPCL''''s entire ecosystem. I take this opportunity to thank each one of
you for your resolute belief in our competencies. BPCL will continue
to create value and enhance its performance to levels which hitherto
have not been reached. As I prepare to lay down office by the end of
September, I remain confident that the Company has all the ingredients
necessary to continue fuelling the dreams and aspirations of all its
stakeholders, just as it has done in the last four decades.

Warm regards,

S. VARADARAJAN

Chairman & Managing Director

CIN: U67190WB2003PTC096617. Trading in Commodities is done through our Group Company Dynamic Commodities Pvt. Ltd. The company is also engaged in Proprietory Trading apart from Client Business.
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