Earnings Review
BPCL's Oct-Dec PAT jumps up 37% YoY as crude oil cost falls
This story was originally published at 18:32 IST on 22 January 2025
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--BPCL Oct-Dec net profit INR 46.49 bln
--Analysts saw BPCL Oct-Dec net profit INR 49.3 bln
--BPCL Oct-Dec net profit INR 46.49 bln vs 33.97 bln
--BPCL Oct-Dec revenue INR 1.275 trln vs 1.299 trln
--BPCL Oct-Dec market sales 13.43 mln tn vs 12.92 mln tn year ago
--BPCL Oct-Dec refinery throughput 9.54 mln tn vs 9.86 mln tn yr ago
--BPCL Apr-Dec average GRM $5.95/bbl vs $14.72/bbl year ago
--BPCL Apr-Dec net profit INR 100.61 bln vs 224.49 bln year ago
--BPCL Apr-Dec revenue INR 3.735 tln vs 3.747 tln
--BPCL to pay INR 5 per share interim dividend
By Sunil Raghu
AHMEDABAD – Bharat Petroleum Corp. Ltd.'s net profit for the December quarter jumped up almost 37% from a year ago to INR 46.5 billion, but was lower than what analysts had estimated. The rise in net profit was mainly due to fall in cost of crude oil and lower finance costs, leading to overall drop in its expenditure. Net profit of the state-owned company was up on-year after falling for three successive quarters.
Global crude oil prices fell in the December quarter, bringing down the company's cost of raw materials consumed by 9.6% on year to INR 508.2 billion. Crude oil is a key raw material used by oil marketing companies and any surge in its price impacts their profitability. During the quarter, the price of Brent crude averaged $74 per barrel, down from $78.8 per barrel in the preceding quarter.
The oil marketing company was expected to report a 45.1% on-year rise in net profit to INR 49.3 billion for the December quarter, according to an average of estimates from 13 brokerages. BPCL's revenue for Oct-Dec was INR 1.3 trillion, down 1.8% on year. The revenue was expected to fall 9.6% on year to INR 1 trillion.
BPCL's crude oil refinery throughput in Oct-Dec was 9.5 million tonnes, down from 9.9 million tonnes a year ago. The company's market sales during the quarter were higher at 13.4 million tonnes, compared with 12.9 million tonnes a year ago.
Total expenses of the company, including finance costs, fell 3.1% on year to INR 1.2 trillion in Oct-Dec. Finance costs fell 14.6% to INR 4.3 billion from INR 5.0 billion a year ago. The cost of materials consumed fell 9.6% on year to INR 508.2 billion from INR 562.1 billion a year ago.
BPCL's net profit for Apr-Dec stood at INR 100.6 billion, on revenue of INR 3.7 trillion. A year ago, the company's net profit was INR 224.5 billion on revenue of INR 3.8 trillion.
BPCL's gross refining margin in Apr-Dec fell 59.6% to $5.95 per barrel from $14.72 per barrel a year ago. The gross refining margin, or GRM, is the difference between the price of crude oil and the total value of petroleum products produced by a refinery. It is a key indicator of a refinery's efficiency and profitability.
The company also announced a payout of INR 5 per share as interim dividend to its shareholders by Feb. 20. On Wednesday, shares of BPCL closed lower by 1% at INR 277.60 on the National Stock Exchange. Intraday, the shares hit a high of INR 283.55 and low of INR 274.05. End
US$1 = INR 86.32
Edited by Ashish Shirke
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