BPCL net profit at Rs 670 cr

Bharat Petroleum Corporation (BPCL), a public sector oil marketing company, posted net profit of Rs 670 crore in the quarter ended March 31, 2007, compared with

Rs 1,683.9 crore in the corresponding quarter of 2006. The net sales of the company during the same period saw 7 per cent increase from Rs 22,642.90 crore to Rs 24,126.5 crore.

The net profit figures for the fourth quarter of 2006 and 2007 are, however, not comparable.

"In the financial year 2006, the company received the entire year's worth of subsidy on petroleum products in the fourth quarter, giving an instant thrust to the net profit of that quarter.

However, in 2007, BPCL received subsidies on a quarterly basis. While the company posted profits in all four quarters in 2007, in 2006 it suffered losses during the first three quarters," explained a company official.

Backed by higher refining margins and increased production, the company's net profit during the year ended March 2007 increased 519 per cent to Rs 1,805.5 crore. Net sales, in keeping with industry expectations, were up 27 per cent, from Rs 77,035.9 crore in 2006 to Rs 97,560.2 crore. The earnings per share increased to Rs 49.94 during the period from Rs 8.07 in 2006.

The gross refining margin (GRM) during the year was $3.64 per barrel, an improvement of 122 per cent over the previous year's margin which stood at $ 1.64 per barrel for BPCL's Mumbai refinery. The GRM at the company's refinery at Kochi also increased from $3.17 to $3.46 per barrel during this period.

The crude oil throughtput increased from 17.24 million tonnes in 2006 to 19.78 mt in 2007,while the market sales of products increased to 23.45 mt in 2006-07.