BPCL posts net loss of Rs 6,291 crore in Q1

Bharat Petroleum Corporation Ltd (BPCL) on Saturday reported a net loss of Rs 6,291 crore in the first quarter of the current financial year on fuel prices holding steady despite rising costs.

A net loss of Rs 6,290.8 crore in April-June compared to Rs 3,192.58 crore in the same period a year ago, the company said in a statement.

Operating revenue increased to Rs 1.38 lakh crore from Rs 89,688.98 crore in April-June 2021.

The company earned $27.51 per barrel of crude oil turned into fuel during the quarter, compared to $4.12 per barrel of refining gross margin a year ago, but that was offset by losses incurred in due to the maintenance of fuel prices despite rising costs.

BPCL said it had a negative EBITDA of Rs 5,461.56 crore in the first quarter compared to a positive of Rs 5,308.52 crore last year.

EBITDA margin was -4% in the first quarter of FY22-23 compared to 6% in the first quarter of FY21-22.

Commenting on the performance, Vetsa Ramakrishna Gupta, Director (Finance) of BPCL, said: “BPCL’s refineries delivered outstanding performance, supported by strong international petroleum product cracks, which led to higher GRM.

The increase in market sales from 9.63 million tonnes in Q1 2021-22 to 11.76 million tonnes in Q1 2022-23 is mainly attributable to a weak base effect as well as higher station footfall -BPCL service. “Overall, despite strong GRMs, the company posted a net loss in the first quarter due to heavy losses in marketing activities,” he added.

Ann J. Cox