GP Petroleums Expands Global Footprint with UAE Partnership

GP Petroleums Limited , a prominent player in the petroleum industry, has announced a strategic partnership with Modern International FZE, marking a significant step towards expanding its international presence. The collaboration, formalized through a Manufacturing and Marketing Agreement, aims to enhance GP Petroleums' brand visibility and reach in the United Arab Emirates (UAE) market.

Partnership Details

The agreement, effective from October 1, 2025, outlines a collaborative effort between GP Petroleums and Modern International FZE, a UAE-based company specializing in lubricant formulation, manufacturing, and marketing. Under this arrangement, Modern International FZE will manufacture, supply, and market products under GP Petroleums' "IPOL" brand in the UAE market.

Key Terms of the Agreement

The partnership includes several noteworthy terms:

Aspect	Details
Duration	5 years (October 1, 2025 - September 30, 2030)
Royalty Fee	3% of selling value (EVAT) for first 2 years
Minimum Guarantee	USD 30,000 per year or 3% of selling value (whichever is higher) after initial 2 years
Manufacturing Location	Hamriyah Free Zone, Sharjah, UAE
Production Capacity	40,000 metric tons per year
Product Range	Industrial oils, automotive oils, process oils, transformer oils, greases, and specialty products

Strategic Implications

This partnership represents a strategic move for GP Petroleums to leverage Modern International FZE's local market presence and manufacturing capabilities. The collaboration is expected to significantly boost the visibility and availability of GP Petroleums' IPOL brand in the UAE region.

Modern International FZE's state-of-the-art facility, spanning 10,000 square meters in the Hamriyah Free Zone, is well-equipped to produce a full range of high-quality lubricants. This aligns well with GP Petroleums' goal of expanding its product offerings in the international market.

Market Impact

The agreement is poised to strengthen GP Petroleums' position in the competitive UAE lubricants market. By partnering with a local manufacturer, the company can potentially benefit from reduced logistics costs and improved market responsiveness.

As the petroleum and lubricants industry continues to evolve, such strategic partnerships may become increasingly important for companies looking to expand their global footprint and capitalize on regional market opportunities.

Investors and industry observers will likely keep a close watch on how this partnership unfolds and its impact on GP Petroleums' international growth strategy in the coming years.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.48%	-1.05%	-1.15%	-0.38%	-40.81%	+13.95%

GP Petroleums Limited, a prominent player in the lubricating oils and greases manufacturing sector, has reported a significant increase in profit for the quarter ended September 30, 2022, despite a slight dip in revenue.

Financial Highlights

Profit Surge: The company's profit for Q2 FY2023 stood at ₹601.69 lakhs, marking a substantial 27% increase from ₹473.48 lakhs in the previous quarter.
Revenue Decline: Revenue from operations saw a slight decrease, coming in at ₹20,426.31 lakhs compared to ₹22,013.68 lakhs in the prior quarter, representing a 7.2% decline.
Half-Year Performance: For the half-year period, GP Petroleums reported a profit of ₹1,744.49 lakhs, showcasing a remarkable 160% jump from ₹669.59 lakhs in the same period last year.
Earnings Per Share: Basic earnings per share for the quarter stood at ₹1.18.

Segment-wise Operations

GP Petroleums operates in two primary segments:

Manufacturing: This segment includes the production of lubricating oils and greases.
Trading: The company engages in trading activities for base oil, bitumen, and fuel oil.

Board Approval

The Board of Directors of GP Petroleums Limited approved these unaudited financial results on November 10, 2022.

Financial Performance Analysis

While the quarterly revenue showed a slight decline, the company's ability to significantly boost its profit margins is noteworthy. The substantial increase in half-yearly profit indicates strong overall performance and effective cost management strategies.

Recent Financial Trends

Based on the latest available financial data:

Revenue: The company reported revenue of ₹158.80 crore in the most recent quarter, showing a 13.08% decrease compared to the same quarter last year.
Net Profit: Net profit stood at ₹6.40 crore, reflecting a 25.58% decrease from the previous year's corresponding quarter.
Operating Profit Margin: The OPM for the latest quarter was 5.99%, down from 6.88% in the same quarter last year.

These recent figures suggest that while GP Petroleums has faced some challenges in maintaining revenue growth, the company continues to focus on profitability and operational efficiency.

The significant profit growth reported in Q2 FY2023, despite the revenue dip, demonstrates the company's resilience and ability to optimize its operations in a dynamic market environment.