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BPCL posts 409 pc rise in Q4 net profit

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Our Bureau

Mumbai, May 27

A day after IOC announced oil bond-aided four-fold gain in Q4 net profit, Bharat Petroleum Corporation Ltd (BPCL) on Saturday reported an 408.90 per cent rise in its net profit for Q4 2005-2006, to Rs 1788.3 crore from the previous corresponding Rs 351.4 crore. Net sales were up 33.51 per cent at Rs 21,318.8 crore (Rs 15,968.1 crore for the year-ago period).

For the full fiscal, the refining company showed 86.56 per cent decline in net profit at Rs 129.8 crore (Rs 965.8 crore), despite 22.76 per cent increase in net sales to Rs 72,395.6 crore (Rs 58,970 crore). Expenditure was up 25.26 per cent to Rs 71,822.1 crore (Rs 57,336.3 crore).

The fourth quarter earnings per share (EPS) improved to Rs 59.61 (Rs 11.71) but the full year EPS was a low at Rs 4.33 (Rs 32.19). BPCL had reported loss in the first three quarters of FY06. "Financial results of the year have been adversely affected on account of high crude oil and product purchase prices, which could not be fully passed on to consumers," BPCL's statement on FY06 results said.

According to it, the under-recovery on high-speed diesel , motor spirit , SKO (PDS) and LPG (domestic) was partially compensated by upstream oil companies as advised by the Government. An amount of Rs 3581.89 crore was, therefore, accounted towards discount received for the purchase of crude oil, LPG and SKO from ONGC and GAIL. An amount of Rs 346.78 crore was accounted as discount on purchase from refineries under their arrangement for sharing under-recovery in SKO (PDS), and LPG (domestic).

In lieu of under-recoveries on account of LPG (domestic) and SKO (PDS), the corporation received oil bonds of Rs 2,163.12 crore from the Government in March 2006, which has been included in sales. Gross refining margin in FY06, after adjusting share of under-recovery on SKO and LPG, was $1.64/barrel or roughly Rs 544/mt ($4.56/barrel; roughly Rs 1,539/mt ).

Subsidy claim from Government towards the sale of SKO (PDS) and LPG (domestic) has been provisionally accounted at one-third the rates approved by the Government for 2002-2003.

The statement said though the shareholders had approved the Scheme of Amalgamation of Kochi Refineries and BPCL, no effect of the proposed merger from the appointed date of April 1, 2004, has been reflected in the accounts.

Related Stories:
HPCL, BPCL run up losses in excess of Rs 1,000 cr each
BPCL Q4 net down 15 pc at Rs 351 cr

(This article was published in the Business Line print edition dated May 28, 2006)
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