Unlike peers Indian Oil and HPCL, public sector oil refiner and marketer BPCL posted healthy profit in the September quarter. While the company’s revenue fell 25 per cent year-on-year due to the decline in refined product prices, profit more than doubled to ₹1,018 crore.
A few factors helped. One, gross refining margin improved to $6.2 a barrel during April-September 2015 from $2.36 in the year-ago period. Next, sales volumes in the September quarter grew 5 per cent Y-o-Y. Besides, the company got fully compensated for under-recoveries in contrast to the ₹503 crore it had to bear during April-September 2014.
Finally, the company seems to have controlled its inventory losses, arising from the decline in crude oil price, better than peers.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.