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Riding on high refining margins, state-run Bharat Petroleum Corporation posted a 95.4 per cent jump in its net profit at Rs 2,376 crore in the June quarter of 2015-16, against Rs 1,216 crore a year ago. This was also 37.4 per cent higher than the Bloomberg consensus estimate of Rs 1,729 crore.
Total income for the quarter was Rs 51,966 crore, against Rs 66,750 crore a year ago, primarily due to a fall in crude oil prices. The Bloomberg estimate had pegged this at Rs 55,751 crore.
Gross refining margins, the difference between total value of petroleum products and the price of crude oil, came in at $8.55 a barrel as cracks spread were good in petrol and diesel. The company said marketing margins have also been good.
BPCL recorded an inventory gain of Rs 200 crore during the first quarter. BPCL's scrip was trading at Rs 875.80, down 1.10 per cent.
BPCL, which is planning to diversify into downstream petrochemicals with an investment of Rs 4,588 crore by using propylene will invest around Rs 14,225 crore in its expansion at the Kochi refinery and Rs 5,000 crore for setting up a petrochemical joint venture.
The total investment in both the projects is about Rs 20,000 crore, BPCL had said last December.
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