Bharat Petroleum Q2 Profit Falls 22.5% Amid Volatile Crude Prices

Bharat Petroleum’s standalone net profit fell 22.5% year over year to ₹4,993.17 crore in the September-end quarter, from ₹6,442.5 crore in the same period last year. Volatile crude prices affected margins after the conflict in West Asia was reignited, according to the company’s quarterly performance.

Higher costs weigh on earnings

The state-owned oil-marketing company’s cost of materials consumed rose 44.2% during the period to ₹74,969 crore. The increase in material costs came even as Bharat Petroleum reported higher revenue for the quarter.

Revenue increased about 29% year over year to more than ₹1.58 lakh crore. The company’s physical refining performance also improved, rising 6% during the period to 10.41 million metric tonnes (MMT).

Domestic sales grew about 6.33% to 13.47 MMT. The higher sales and refining volumes, however, did not prevent the decline in standalone profit as crude-price volatility pressured margins.

Peer results offer wider context

Bharat Petroleum’s result follows a 9% decline in standalone net profit reported by peer Hindustan Petroleum. Delhi-headquartered peer Indian Oil is scheduled to post its September-end financial results on October 30. The results will provide another reference point for assessing how crude-price movements affected major state-owned oil companies during the quarter.

Source: The Hindu