BPCL Q1 Review - Refining Drags Earnings; Prospects Remain Solid: Centrum Broking
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Centrum Broking Report
Bharat Petroleum Corporation Ltd.’s adjusted Ebitda/profit after tax for Q1 FY22 was Rs 32.5/15.6 billion (down 17/down 25% YoY/QoQ), below our estimate of Rs 46/26.5 billion, driven by weak refining earnings.
Refining throughput was 6.8 million tonne and gross refining margins were $4.1/barrel of oil.
Marketing numbers were broadly in-line, with domestic sales of 9.6 million tonne and export sales of 0.31 million tonne.
Marketing margins of Rs 5,475/tonne were ahead of estimate of Rs 5,305/tonne.
Despite the disappointment this quarter, we see the rapid reopening of economic activity across the country as a major positive for the marketing segment, while refining metrics globally are on the way up, supporting BPCL's earnings prospects over FY22-23E.
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