A Bharat Petroleum tanker delivers fuel to a petrol pump in central Mumbai, India. (Photographer: Santosh Verma/ Bloomberg News)

BPCL Q3 Profit Takes A Hit On Weaker Refining Margins

Bharat Petroleum Corporation Ltd.’s profit declined due to weaker refining margins but exceeded analyst estimates for the October-December quarter.

Net profit fell 9 percent to Rs 2,144 crore, compared to that a year ago, the company said in its exchange filing. That’s higher than the Rs 2,074 crore estimated by analysts tracked by Bloomberg.

The profit was aided by higher inventory gains during the quarter as crude oil prices have risen substantially since the second half of 2017. Brent crude rose 19 percent to $66.8 per barrel over the third quarter and is currently trading at $64.25 per barrel.

Stronger inventory gains were, however, offset by weaker refining and marketing margins. BPCL earned $7.89 for every barrel of crude processed into fuel in the third quarter as compared to $7.97 per barrel in the previous quarter. The Singapore gross refining margin – the Asian benchmark – averaged around $7.2 per barrel.

  • Revenue rose 13.7 percent year-on-year to Rs 60,616 crore, lower than the Rs 64,307 crore estimated.
  • Earnings before interest, tax, depreciation and amortisation fell 9.6 percent to Rs 3,188 crore on a sequential basis.
  • Ebitda margin contracted to 5.3 percent from 6.6 percent during this period.

The board of BPCL announced an interim dividend of Rs 14 per share for the quarter.

Ahead of the earnings announcement, the stock closed 0.7 percent lower at Rs 474 on the BSE