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MarketScreener Homepage  >  Equities  >  Moscow Micex - RTS  >  Rosneft Oil Company    ROSN   RU000A0J2Q06

ROSNEFT OIL COMPANY

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Rosneft, Aramco unlikely to bid for India's BPCL stake -sources

09/29/2020 | 08:15pm EST

(Repeats story published on Tuesday with no changes to text)

NEW DELHI/MOSCOW, Sept 29 (Reuters) - Rosneft and Saudi Aramco are unlikely to bid in the privatisation of Indian refiner Bharat Petroleum Corp, sources familiar with the matter said, as low oil prices and weak demand curb their investment plans.

Russia's Rosneft had expressed an interest in buying the federal government's 53.29% stake in Bharat Petroleum (BPCL) when its chief executive Igor Sechin visited New Delhi in February, while India's trade minister has said that Saudi oil giant Aramco was enthusiastic about the stake sale.

A Rosneft source, however, said it will not buy BPCL, while another said the Russian oil major would only be interested in BPCL's marketing business, which is comprised of fuel depots and more than 16,800 fuel stations.

"For this, India has to sell BPCL in parts," the source said.

India's government, which is looking to finance welfare schemes and bridge a fiscal deficit that has already topped the annual target, had aimed to raise $8 billion to $10 billion through the sale of its stake in BPCL.

But BPCL's share price has plunged by nearly 30% over the past year to trade at about 386 rupees on Tuesday.

"This is not the time to invest in refining ... demand would be there for oil to chemicals and not conventional products," one of the sources familiar with Aramco's thinking said.

Rosneft and India's finance ministry did not respond to requests for comment.

"We continue to explore potential growth opportunities in Asia, including India, and will make appropriate updates as and when necessary," Aramco said, declining further comment.

The Saudi government discussed BPCL's privatisation with an Indian oil ministry official in July, an oil ministry document showed.

However, a second source familiar with Aramco's thinking said that after initially showing interest Aramco had not submitted a formal expression of interest (EoI), even though the process was extended by two months to Sept. 30.

A third source said that Aramco has halted most of its India investment plans because of the oil price and is unlikely to bid for BPCL.

"India will not get the deserved price for the BPCL stake sale in the current environment," a fourth source familiar with Aramco's thinking said.

This means India may have to pursue other avenues to raise funds to meet its spending commitments, Kiran Jadhav, who runs his own asset management firm with a 2 billion rupee ($27 million) portfolio, said.

"If big firms are backing out, this will definitely hurt the share price and valuation of BPCL," he said.

Sources said that neither Rosneft nor Aramco see much value in refining because the government in the Indian state of Kerala, home to BPCL's biggest refinery, might challenge the privatisation in court and BPCL's two other refineries are in cities, leaving little scope for revamps and expansion.

Reuters reported last week that India's efforts to privatise BPCL could spill into the next fiscal year, citing a government document and sources.

"Aramco has not participated in the EoI so far. Initially we had expected them to show interest. We are weighing our options," a source familiar with India's stake sale programme said. ($1 = 73.7460 Indian rupees) (Additional Reporting by Rania El Gamal in Dubai Editing by Susan Fenton, David Goodman and Alexander Smith)


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
BHARAT PETROLEUM CORPORATION LIMITED 1.37% 384.5 Delayed Quote.-22.84%
INTER RAO UES -1.65% 5.136 End-of-day quote.1.86%
LONDON BRENT OIL 0.13% 47.18 Delayed Quote.-27.74%
PUBLIC JOINT STOCK COMPANY ROSNEFT OIL COMPANY -1.19% 5.792 Delayed Quote.-18.59%
ROSNEFT OIL COMPANY -2.63% 447.55 End-of-day quote.-0.48%
SAUDI ARABIAN OIL COMPANY 0.70% 36 End-of-day quote.2.13%
WTI 0.84% 44.275 Delayed Quote.-26.33%
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Financials (USD)
Sales 2020 77 095 M - -
Net income 2020 -88,1 M - -
Net Debt 2020 54 704 M - -
P/E ratio 2020 -155x
Yield 2020 0,73%
Capitalization 55 745 M 55 745 M -
EV / Sales 2020 1,43x
EV / Sales 2021 1,19x
Nbr of Employees 335 000
Free-Float 11,2%
Chart ROSNEFT OIL COMPANY
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Rosneft Oil Company Technical Analysis Chart | ROSN | RU000A0J2Q06 | MarketScreener
Technical analysis trends ROSNEFT OIL COMPANY
Short TermMid-TermLong Term
TrendsBullishBullishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 15
Average target price 6,15 $
Last Close Price 5,87 $
Spread / Highest target 27,8%
Spread / Average Target 4,75%
Spread / Lowest Target -23,3%
EPS Revisions
Managers
NameTitle
Igor Ivanovich Sechin Chairman-Management Board & Deputy Chairman
Gerhard Schroeder Chairman
Petr Ivanovich Lazarev Finance Director
Artur Matthias Warnig Deputy Chairman
Robert W. Dudley Non-Executive Director
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