Shrinking Refining Margins Drag BPCL’s Second Quarter Profit
Net profit fell to Rs 1305.2 crore from Rs 2620.5 crore sequentially
State controlled Bharat Petroleum Corporation Ltd. reported a 50.2 percent decline in profit for the second quarter, missing street estimates.
The oil and gas company saw its net profit fall to Rs 1,305.2 crore from Rs 2,620.5 crore sequentially. The consensus of analyst estimates tracked by Bloomberg stood at Rs 1,573.8 crore.
Revenue in the second quarter declined 3.7 percent to Rs 54,866.9 crore from Rs 56,967.2 crore in the previous quarter.
Earnings before interest, taxes, depreciation and amortisation fell 64.7 percent to Rs 1,381.4 crore from Rs 3,919.2 crore quarter on quarter. The EBITDA margin contracted 430 basis points to 2.5 percent.
Historical comparison, however, is not meaningful due to one-off charges related to inventory and forex movements in the previous quarter.
BPCL's refining margins during the second quarter stood at $4.56 per barrel compared to $6.09 per barrel during the first quarter.