Bharat Petroleum Corp Ltd on Monday reported a consolidated net profit of Rs 3,181.42 crore for the third quarter ended December 31, 2023, against a profit of Rs 1,747.01 crore a year ago, helped by improved refining margins amid softer crude oil prices.
On a standalone basis, net profit rose to Rs 3,397.27 crore from Rs 1,959.58 crore reported an year ago.
Analysts had anticipated a net profit of around Rs 3,303.80 crore, down around 70 percent on-quarter. Net sales were expected to drop 18 percent on-year and 6 percent on-quarter to Rs 10,2991.50 crore, as per seven analysts polled by Moneycontrol.
Total income for the quarter declined 2 percent to Rs 1.30 lakh crore as compared to Rs 1.33 lakh crore reported an year earlier. On a sequential basis net profit declined 61 percent while total income rose 11 percent.
The three state run oil marketing companies – Indian Oil Corporation, Hindustan Petroleum Corporation Ltd (HPCL) and Bharat Petroleum Corporation Ltd (BPCL) – reported a consolidated net profit of Rs 27,295 crore in the second quarter of financial year 2023-24, recouping the losses they incurred from record-high oil prices last year.
In the October-December 2024 quarter, BPCL’s market sales were 12.92 million metric tonne (MMT), as against 12.81 MMT last year.
Fuel product retail selling prices have been unchanged since May 2022 and headroom for their downward revision may emerge if crude prices remain stable, rating agency ICRA said in a report last week.
Inventory losses weigh on margins
Although the OMCs benefitted after crude prices dropped 18 percent since September, refining margins would get impacted due to moderation in diesel cracks and a reduction in Russian crude discounts, according to analysts.
BPCL's average gross refining margin (GRM) for the first nine months of FY24 was $14.72 per barrel, as against $20.08 during the corresponding period last year, the company said in a stock exchange filing.
Last week, IndianOil's net profit declined 33 percent sequentially amid large inventory losses and a sharp decline in diesel cracks. Hindustan Petroleum Corp amid a lag in buying and processing crude when rates fell.
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