BPCL reports Rs 6,291 crore net loss in Q1

Bharat Petroleum Corporation Ltd (BPCL) on Saturday reported a net loss of Rs 6,291 crore in the first quarter of the current fiscal on holding fuel prices despite rise in cost. Net loss of Rs 6,290.8 crore in April-June compared with Rs 3,192.58 crore in the same period a year back, the company said in a statement.

Revenue from operations rose to Rs 1.38 lakh crore from Rs 89,688.98 crore in April-June 2021. The company earned $27.51 on turning every barrel of crude oil into fuel in the quarter as against $4.12 per barrel gross refining margin a year back.

But this was negated by losses that were incurred because of holding fuel prices despite the rising costs. BPCL said it had a negative EBITDA of Rs 5,461.56 crore in Q1 versus a positive Rs 5,308.52 crore last year. EBITDA margin was at negative 4 percent in Q1 FY 22-23 vs 6 percent in Q1 FY 21-22.

Commenting on the performance, Vetsa Ramakrishna Gupta, Director (Finance), BPCL said, "BPCL refineries have performed exceptionally well supported by robust international cracks of petroleum products, resulting in the GRM going up." The increase in market sales from 9.63 million tonnes in Q1 2021-22 to 11.76 million tonnes in Q1 2022-23 was mainly attributable to a low base effect as well as higher turnout at BPCL fuel stations.

"On an overall basis, despite robust GRM's, the company reported a net loss in the first quarter due to heavy losses in marketing business," he added.