Privatisation-bound Bharat Petroleum Corp Ltd (BPCL) on Thursday reported nearly doubling of net profit in the June quarter after inventory gains offset a decline in refining margins and fuel sales. Standalone net profit in April-June stood at Rs 2,076.17 crore compared with Rs 1,075.12 crore a year back, the company said in a regulatory filing.
The company earned USD 0.39 on turning every barrel of crude oil into fuel as compared to a gross refining margin (GRM) of USD 2.81 a barrel in the same period of the previous year.
Fuel sales in the quarter that saw economic activity coming to a halt due to nationwide COVID-19 lockdown slipped to 7.53 million tonnes when compared to 11.11 million tonnes sales last year.
“Decrease (in sales) is mainly in retail petrol (38.77 per cent), retail diesel (34.62 per cent,) ATF (82.92 per cent) and partly offset by an increase in LPG (10.83 per cent),” it said.
Company officials said the rise in profit was primarily due to inventory gains resulting from the valuation of inventory held rising because of a pick up in oil prices in the later half of the quarter.
“The outbreak of COVID-19 globally and resultant lockdown in many countries, including from March 25, 2020, in India, had an impact on the business of the Corporation.
“Consequently, lower demand for crude oil and petroleum products has impacted the prices and therefore refining margins globally,” BPCL said.
Since petroleum products are covered under essential services, the refining and marketing operations of the Corporation were continued during the lockdown period.
“During this quarter, there was lower refinery throughput and revenue from operations which was mainly due to lower demand for petroleum products. With the gradual reopening of the economy, Corporation expects the refinery throughput and revenue from operations will improve and will be at normal levels post COVID-19 impact and removal of complete lockdown restrictions,” it said.
BPCL’s refineries processed 5.14 million tonnes of crude oil in April-June, down from 7.45 million tonnes a year back. Sales dipped 32.22 per cent.
Revenue from operations during the said quarter was down to Rs 50,616.92 crore from Rs 81,296.23 crore in the same period of 2019-20.