State-run Bharat Petroleum Corporation
(BPCL), in the process of being privatised, has posted 30 per cent increase in consolidated profit before tax (PBT) for the first quarter (Q1) of 2020-21 to Rs3,080.8 crore, against Rs2,375.02 crore during the April-June period of 2019-20.
According to the oil and gas company, the rise in profit was mainly due to inventory gain, despite a decline in sales and weak refining margin.
However, the company’s revenue from operations saw a drop of 41 per cent for the quarter under review to Rs50,909.2 crore, compared to Rs86,412.9 crore in Q1 of the previous financial year.
The average gross refining margin during the quarter ended June 30 was $0.39 per barrel, against $2.81 per barrel during the April-June quarter of 2019.
The market sales for the quarter ended June 30 were lower at 7.53 million tonnes (mt), compared to 11.11 mt achieved for the quarter ended June 30, 2019. The decrease was mainly due to drop in petrol sales by 38.77 per cent, drop in diesel sales by 34.62 per cent, and decline in aviation jet fuel sales by 82.92 per cent. This was partly offset by increase in liquefied petroleum gas sales by 10.83 per cent. Other expenses for the April-June period include foreign exchange (forex) loss of Rs56.58 crore, against a forex gain of Rs31.46 crore during the same quarter last year.
The company said the outbreak of Covid-19 globally and the resultant lockdown in many countries, including India from March 25, had an impact on its business. “Consequently lower demand for crude oil and petroleum products has impacted prices and therefore, refining margins globally. Since petroleum products are covered under essential services, the refining and marketing operations of BPCL
were continued during the lockdown period,” the company said.