Bharat Petroleum Corp Ltd (BPCL) today reported a 50 per cent drop in its September quarter net profit as refining margin dipped on slumping international oil prices.
Net profit in July-September at Rs 464.20 crore, or Rs 6.42 per share, was 50 per cent lower than Rs 931.13 crore, or Rs 12.88 a share, in the same period a year ago, the company said in a filing to the stock exchanges.
The company earned $ 2.36 on turning every barrel of crude oil into product as opposed to a gross refining margin of $ 4.38 per barrel last year.
Turnover was marginally higher at Rs 62,025.16 crore in the second quarter as compared to Rs 61,784.51 crore in the same period a year ago.
BPCL said almost all its losses incurred on selling diesel, domestic LPG and kerosene at rates below cost were made up by cash subsidy from government (Rs 1,505.80 crore) and support from upstream firms like ONGC (Rs 3530.79 crore).
However, because of unmet losses of first quarter, the company had to in first half of current fiscal absorb Rs 503.42 crore.
Sales rose to 17.13 million tonnes when compared to 16.38 million tons, it said adding the increase was mainly in petrol (10.34 per cent), LPG (12.03 per cent) and diesel (Rs 1.92 per cent).