BPCL Q3 Results: Profit Falls On Lower Refining Margin
The BPCL is displayed at a fuel station in Mumbai. (Photographer: Vivek Prakash/Bloomberg)

BPCL Q3 Results: Profit Falls On Lower Refining Margin

Bharat Petroleum Corporation Ltd.’s profit for the three months through December fell on lower refining and marketing margins. Yet, it met estimates.

Net profit fell 26.2 percent sequentially to Rs 1,260.6 crore, according to its exchange filing. Analysts tracked by Bloomberg had pegged profit at Rs 1,310 crore.

  • Revenue rose 16.2 percent over the previous quarter to Rs 74,732.8 crore—against the estimated Rs 71,322 crore.
  • Operating profit rose 13.8 percent to Rs 2,703 crore.
  • Margin narrowed 10 basis points to 3.6 percent.
  • Other income fell 41 percent to Rs 514.8 crore.

Gross refining margin—what oil marketers earn for refining one barrel of crude oil—fell due to a decline in prices of fuel oil as ships across the world switched to a cleaner alternative. Besides, retail fuel prices didn’t rise in tandem with Brent crude oil during the third quarter. The markup earned on sale of every litre of diesel and petrol also fell.

BPCL’s refining margin fell to $3.26 per barrel during the third quarter, according to BloombergQuint’s calculations. Marketing margin on diesel fell to Rs 2.25 per litre from Rs 3.7 a litre. Likewise, the margin on petrol fell to Rs 3.2 per litre from Rs 3.4 per litre.

Shares of Bharat Petroleum closed 1.21 percent lower, ahead of the earnings announcement, while the benchmark BSE Sensex closed 0.26 percent down.

BPCL Q3 Results: Profit Falls On Lower Refining Margin

Watch | N Vijayagopal, director-finance at BPCL, speak on the company’s performance in Q3...

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.