Average gross refining margins (GRM) for the quarter under review stood at $0.39 a barrel versus $2.81 a barrel in year-ago period
Oil retailer Bharat Petroleum Corporation (BPCL) has turned profitable for the June quarter, with net profit at Rs 2,076 crore on account of operating income. The COVID-19-led lockdown hit demand, which resulted in falling gross refining margin (GRM).
The state-run oil refining company had posted a loss of Rs 1,361 crore in the March quarter and profit of Rs 1,075 crore in June quarter of 2019.
Revenue from operations plunged 43.8 percent sequentially and 49.2 percent year-on-year to Rs 38,785.1 crore in Q1 FY21.
Average gross refining margins (GRM) for the quarter under review stood at $0.39 a barrel versus $2.81 a barrel in year-ago period.
"The outbreak of COVID-19 globally and resultant lockdown in many countries, including from March 25 in India, had an impact on the business of the corporation. Consequently, lower demand for crude oil and petroleum products impacted prices and therefore refining margins globally," the company said in a BSE filing.
Q1 saw lower refinery throughput and revenue from operations due to lower demand of petroleum products, it added.
Market sales were lower at 7.53 million tonne compared to 11.11 MT YoY. "Decrease is mainly in MS - Retail (-38.77 percent), HSD-Retail (-34.62 percent) and ATF (-82.92 percent), but was partly offset by increase in LPG (10.83 percent)," it said.
On the operating front, earnings before interest, tax, depreciation and amortisation (EBITDA) stood at Rs 3,915.7 crore on lower operating cost against a loss of Rs 618.8 crore in the March quarter.Other income fell considerably to Rs 593.31 crore as against Rs 1,156.76 crore in the March ended quarter.