BPCL

BPCL reported better than expected performance for the quarter ended December 2011 with 60% jump in its total sales to Rs 58824.45 crore compared to corresponding previous year quarter while its bottomline rose multifold to Rs 3139.60 crore from Rs 187.38 crore over the same period. Better than expected performance was due to significant jump in budgetary support received by the company and increased discounts from the upstream companies. Budgetary support rose 286% to Rs 6993.70 crore during the quarter while upstream discounts rose 205% to Rs 3572.66 crore.

Average Gross Refining Margins during the nine months ended December 2011, were USD 2.78 per barrel as against USD 3.63 per barrel during the corresponding previous year period.

Quarterly results for the PSU oil refining and marketing companies has become less relevant as its financial performance is mostly based on budgetary support by the government and the upstream sharing of subsidy burden. Government compensation for full year is decided only at the end of the year. On a consolidated basis BPCL had reported profit of Rs 1634.96 crore in FY'11, Rs 1632.36 crore in FY'10, Rs 633.76 crore in FY'09, Rs 1640.78 crore in FY'08, Rs 2145.20 crore in FY'07 and Rs 537.30 crore in FY'06. So quarterly results may have wide swings based on interim budgetary support by the government but it is expected to remain profitable at the end of year.

BPCL sale of petroleum products were 9% higher at 8.04 million tonne during the quarter while the crude throughput was up 22% at 6.13 MMT. Export sales rose 51% to rs 0.95 million tonne.

Quarterly Results

BPCL total sales rose 60% to Rs 58824.45 crore for the quarter ended December 2011 compared to corresponding previous year period. This included budgetary support of Rs 6993.70 crore up by 286% on a y-o-y basis. Excluding compensation from the government sales of the company rose 49%.

OPM of the company rose 430 bps to 6.3% as cost of raw material consumed as a percentage to net sales (net of stock adjustments) fell to 38.2% from 41.2, purchase of products for resale fell to 49.2% from 51.1% and staff cost fell to 0.8% from 1.6%. However other expenses rose to 5.4% from 4.1%. As a result operating profits rose 406% to Rs 3687.38 crore.

Other income rose 33% to Rs 438.94 crore. Interest cost rose by 88% to Rs 517.41 crore. Depreciation rose 26% to Rs 466.68 crore. PBT was up 658% to Rs 3142.23 crore. The company has not considered provision for taxes due to uncertainty in estimation of profits, pending finalization of compensation mechanism for under recoveries on sale of sensitive petroleum products. The company bottomline of the company rose multifold to Rs 3139.60 crore compared to Rs 187.38 corresponding previous year quarter.

Performance for the nine months ended December 2011

Inspite of robust quarterly performance nine months ended December 2011 results show is dismal. The overall top-line rose 39% to Rs 147224.04 crore compared to corresponding previous year period while bottomline reported loss of Rs 2651.56 crore compared to profit of Rs 611.50 crore in 9MFY'11. The company also reported loss at operating level of Rs 1213.52 crore. Other income rose 5% to Rs 1286.87 crore, interest costs surged 66% to Rs 1305.49 crore and depreciation rose 21% to Rs 1416.79 crore. Loss at PBT level was Rs 2648.93 crore.

BPCL market sales during the nine months ended 31st December 2011 was higher at 22.92 MMT as compared to 21.51 MMT achieved during the corresponding period of previous year. Increase is mainly in MS-Retail (4.98%), HSD-Retail (12.87%), ATF (7.21%) and LPG (9.77%) partly offset by decrease in Furnace Oil (-31.65%) and Naphtha (-29.83%).

The scrip is currently trading at Rs 598.40.

BPCL: Standalone Results

BPCL: Physical Performance in MMT