• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Pratim Ranjan Bose

Higher subsidies, oil bonds may be main factors

Kolkata , April 18

Thanks to higher subsidies shelled out by upstream companies in the fourth quarter and issue of oil bonds, BPCL is likely to end the last fiscal with a net profit.

BPCL received Rs 1,480 crore worth of price discounts from the upstream oil companies in the fourth quarter of 2005-06. The discounts were almost double than an average subsidy of Rs 700-800 crore received during the last three quarters.

The company had also received oil bonds worth Rs 2,700 crore in two tranches out of a total issue of Rs 11,500 crore. The bonds are of three-, six- and nine-year tenures.

Twin-effect

Though company sources declined to divulge any financial details, industry sources said that thanks to the twin-effect of oil bonds and higher subsidies the oil marketing company might post a "reasonable" profit in the fourth quarter, enough to wipe out the losses incurred during the first three quarters of 2005-06. Interestingly, while bonds ensured that the company would post profit in the fourth quarter, the net profit for the entire fiscal was attributed to the enhanced subsidies.

BPCL reported losses in all three previous quarters. According to the unaudited, cumulative, non-consolidated results available at the NSE, the company posted a net loss of Rs 634.4 crore in the first half. Losses increased to Rs 1,024 crore in the third quarter. Total loss during April-December 2005 was Rs 1,659 crore. The company's scrip closed at Rs 448.75 on Tuesday. This was 1.84 per cent lower than the previous close.

More Stories on : Outlook | Petroleum | Bharat Petroleum Corporation Ltd

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
IOC may sell more short-term bonds

Copyright © 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line