The Hindu Business Line : BPCL incurs Rs 677-cr loss in first quarter

Bharat Petroleum Corporation Ltd (BPCL) reported increased losses for the first quarter ended June 30, 2006, as selling prices failed to match increased raw material and product purchase costs.

Net loss for the quarter amounted to Rs 677 crore compared to Rs 431 crore during the corresponding quarter of the previous year.

The results were adversely affected due to the impact of high crude oil and product prices, which could not be fully passed on to consumers, said a statement from the company.

The gross refining margin during the three-month period, net of discounts, was $4.7 per barrel, (around Rs 1,607 per tonne) as against $5.41 per barrel (Rs 1,770 per mt) a year ago. Also, a Rs 206-crore component of losses resulted from a change to the `weighted average' method in respect of determining cost of inventories of crude oil and finished products, said a statement.

Net income from operations rose 35 per cent to Rs 21,615 crore from Rs 16,015 crore. This was as a result of market sales during the quarter rising to 5.67 million tonnes, up from 5.28 million tonnes a year ago, the highest rise in sales being that of aviation turbine fuel, at 30 per cent. Other income was higher by 29 per cent at Rs 102 crore from Rs 80 crore.

Total expenditure was up 36 per cent, and amounted to Rs 22,161 crore (Rs 16,333 crore). Raw material costs rose 55 per cent to Rs 5,554 crore (Rs 3,579 crore) while purchase of products for resale at Rs 14,942 crore, was higher by 36 per cent from a year ago.

Interests costs at Rs 818 crore (Rs 404 crore) doubled, while depreciation and amortisation were almost unchanged at Rs 150 crore (Rs 153 crore).

Provision for taxation amounted to Rs 2.2 crore (Rs 1.7 crore). BPCL shares ended higher on the bourses. On the BSE, the scrip rose by Rs 1.40 to close at Rs 311.65 on Friday, gaining by 0.45 per cent over Thursday's close.

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