BPCL slips into the red

CORPORATE SCORECARD

State-run oil marketing company Bharat Petroleum Corporation (BPCL) has reported a net loss of Rs 1,066 crore for the first time in two years, as doubling of crude oil prices in the last year led to a higher loss from selling fuel at subsidised rates. The company had posted a net profit of Rs 192 crore in the corresponding quarter last year.

Total income of the company increased from Rs 24,319 crore to Rs 39,297 crore during the quarter under review.

“We have recorded the largest loss for the quarter on account of high crude oil and product prices, which could not be fully passed on to the consumers,” said S K Joshi, director (finance), BPCL. In June 2006, BPCL had posted a loss of Rs 677 crore.

The company’s gross under-recoveries were Rs 11,550 crore for the three months ended June 2008 compared with Rs 2,885 crore at the end of the corresponding quarter last year. Crude oil prices have shot up to $126.33 a barrel in June 2008 from $59.25 a barrel in June 2007.